Fed Chair Warsh testifies, reaffirms 2% inflation target

Federal Reserve Chair Kevin Warsh faced lawmakers on Tuesday, July 14, 2026, for his first congressional testimony since his confirmation, presenting a monetary policy report that signals a firm commitment to lowering inflation. The hearing before the House Financial Services Committee coincided with the release of new government data showing consumer prices rose 3.5 percent in June compared to a year earlier.

In his opening remarks, Warsh emphasized the central bank's political independence and its lack of tolerance for persistently elevated inflation. The semiannual Monetary Policy Report, released on July 10, frames the Fed's longstanding 2 percent inflation target as a firm commitment rather than an aspirational goal. The report also marks a shift by leaning into discussions of money supply dynamics, a topic that had been notably absent from recent Fed communications.

The hearing comes amid a deep internal divide among Federal Reserve officials over the path of inflation. Minutes from the June policy meeting, where the Fed held its benchmark interest rate steady at a range of 3.5 to 3.75 percent, revealed a split. Half of the policymakers who submitted projections supported...