Fed Chair Warsh: Inflation Risks Have Eased, but Prices Remain Too High

Kevin Warsh, Chair of the U.S. Federal Reserve, stated on Wednesday (local time) that while the risks of inflation have decreased, price levels remain too high.
According to Reuters, Bloomberg, and CNBC, Warsh made the remarks while participating as a panelist at the Central Bank Forum hosted by the European Central Bank (ECB) in Sintra, Portugal. He noted that "inflation risks have eased," but emphasized, "We will deliver on price stability in the United States."
He added, "That is our job, that is our mandate," and continued, "The rest, the tactics, the strategy, that will come."
"We all have a job to do, which is price stability. That may not be the only job, and what I have heard over the last few days is an open mind about AI and productivity," Warsh said. "But we all look around and prices are too high."
The event, which marked Warsh's international debut since taking office, was also attended by ECB President Christine Lagarde, Bank of England (BOE) Governor Andrew Bailey, and Bank of Canada Governor Tiff Macklem.
Warsh, who has been pushing to phase out forward guidance, declined to provide signals regarding the Federal Reserve's future policy direction during the event.
On June 17, the Federal Reserve held the Federal Open Market Committee (FOMC) meeting—the first since Warsh took office—and decided to keep interest rates steady at 3.50–3.75%.
Warsh, who has been in office for about a month, stated, "We have been an independent central bank for a long time, and we are now," adding, "I don't think you're going to see any change in that."
※ Please note: This article was translated by AI and may contain errors.