US Federal Reserve Chair Kevin Warsh has assured lawmakers that the central bank remains firmly committed to bringing inflation under control, saying it has “no tolerance” for persistently high price growth.
Testifying before Congress, Warsh said keeping inflation low and stable remains the Federal Reserve’s top priority because rising prices reduce household purchasing power and create uncertainty for businesses. He stressed that the central bank will continue to make policy decisions based on incoming economic data rather than short-term market expectations.
Warsh acknowledged that inflation has eased significantly from its recent highs but said the Fed cannot become complacent. He noted that while progress has been encouraging, policymakers need greater confidence that inflation is moving sustainably towards the central bank’s long-term target before considering major policy changes.
The Fed chief also highlighted the resilience of the US economy, pointing to a strong labour market and steady consumer spending. However, he cautioned that global uncertainties and trade-related developments continue to pose risks to the economic outlook.
During the hearing, lawmakers questioned Warsh on interest rates, employment and the broader direction of monetary policy. He reiterated that the Federal Reserve’s decisions will remain independent and guided by its dual mandate of maintaining price stability and supporting maximum employment.
Warsh also addressed concerns about financial markets, saying the central bank is closely monitoring economic conditions while ensuring that monetary policy supports long-term stability rather than reacting to short-term fluctuations.
For households and businesses, the message was straightforward: while inflation has moderated, the Federal Reserve believes the fight is not yet over. Warsh stressed that restoring lasting price stability remains essential for sustainable economic growth, stronger consumer confidence and a healthy financial system.
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