Fed Chair Warsh pledges zero tolerance for high inflation

Federal Reserve Chair Kevin Warsh delivered his first semiannual testimony to Congress on Tuesday, July 14, 2026, pledging an unwavering commitment to restoring price stability and declaring that policymakers have "no tolerance for persistently elevated inflation." The appearance before the House Financial Services Committee marked a pivotal moment for the new chair, who took office in May, as he outlined his approach to tackling inflation that has remained above the central bank's 2 percent target for five years.

Warsh stated that the Fed's primary objective is to get monetary policy right, asserting that if successful, the recent inflation surge would become a thing of the past. He characterized high inflation as an undue burden on American households and businesses, a sentiment echoing his predecessors. His remarks come amid a backdrop of significant internal debate at the Fed, following a June meeting where nine of 18 policymakers projected at least one interest rate increase before the end of the year.

The Fed has held its benchmark federal funds rate in a target range of 3.5 to 3.75 percent for four consecutive meetings. Warsh, who has been publicly critical of providing...