Fed Chairman Kevin Warsh: This committee will deliver price stability

Summary

New Federal Reserve Chairman Kevin Warsh delivers his first post-FOMC opening remarks, confirming the committee kept the federal funds rate unchanged at 3.5-3.75%. He emphasizes the committee's unanimous commitment to restoring 2% inflation after five years of overshoot, announces a shorter, simpler policy statement without forward guidance, and presents staff economic projections showing solid growth and elevated inflation.

• Fed leaves rates unchanged at 3.5-3.75% amid elevated uncertainty from Middle East conflict.
• Inflation remains well above the 2% target for more than five years; committee unanimously pledges to restore price stability.
• FOMC drops forward guidance and shortens the policy statement for greater simplicity and flexibility.
• Economic projections: real GDP growth at 2.2% this year, PCE inflation at 3.6%, unemployment at 4.3%.
• Chairman Warsh refrained from submitting his own economic projections consistent with his long-held views on the SEP.
• The committee reaffirms maintaining ample reserves in the banking system.
• Productivity growth and capital investment described as strong, with job gains keeping pace with the workforce.