Kevin Warsh Faces First Congressional Hearing as Fed Chairman

Kevin M. Warsh, the chairman of the Federal Reserve, has not yet expressed his stance on raising interest rates to address inflation. Despite this, he intends to reaffirm his commitment to reducing inflation during his initial congressional hearing as chairman.

On Tuesday, Warsh will address the House Financial Services Committee, assuring lawmakers that the central bank’s policies will end the recent inflation surge. Last month, during his first policy meeting as chairman, officials unanimously decided to keep interest rates steady between 3.5% and 3.75%.

“The members of our committee have no tolerance for persistently elevated inflation,” Warsh will state in his prepared remarks. “And we share a resolute commitment to restoring price stability.”

This testimony coincides with the release of the latest Consumer Price Index (CPI) report. June’s inflation showed a notable decrease, thanks to falling energy prices after a temporary truce in the conflict with Iran. Core inflation, which excludes food and energy, also declined more than expected. While this is positive news for the Federal Reserve, the relief may be temporary, as the conflict with Iran has resumed, pushing oil prices higher.