‘We are committed to the 2% inflation goal,’ Warsh tells House lawmakers
Ben Werschkul· Washington Correspondent
Updated Wed, July 15, 2026 at 1:59 AM GMT+5:30
4 min read
Federal Reserve Chairman Kevin Warsh testified before Congress on Tuesday, doubling down on his pledge to squelch inflation
“If we get policy right — and I can assure you we will — the inflation surge of the last five years will be a thing of the past,” Warsh said in his opening statement, adding that he and his central bank colleagues “have no tolerance for persistently elevated inflation.”
“We are committed to the 2% inflation goal,” he said as questioning from House lawmakers began. Warsh added later that his goal is for price changes so undramatic that Americans “don’t have to think about it, they don’t have to talk about it.”
Warsh’s strong words on inflation could be a further signal to markets that interest rates are likely to remain elevated for the time being. However, his remarks came after new inflation data showed prices cooled in June, which should ease some pressure on the Fed. The Consumer Price Index for June registered at 3.5% — down 0.4% from a month earlier — as consumer prices grew more slowly than expected, driven by lower gas prices.
Warsh downplayed the importance of Tuesday’s data as limited evidence of cooling prices
“Some might say today’s data means mission accomplished,” he said. “That’s not my view.”
The evolving inflation and interest rate picture, along with Warsh’s assertions, could eventually put him at odds with President Trump, who has repeatedly called for lower interest rates, though in recent comments, he has seemed resigned to higher rates for now
Warsh told the lawmakers Tuesday that even if Trump’s tone changes and the president publicly pressures him to lower rates, “My commitment to you is to follow the law and follow the data.”
Warsh wouldn’t discusshis plans for adjusting interest ratesbut said in his opening statement that a June decision to keep rates steady was part of the inflation focus. Some of his colleagues, however, have addressed the possibility of rate hikes. Fed governor Christopher Waller said on Monday that policymakers may need to raise rates if underlying inflation continues to pressure the economy
Warsh delivered his remarks on Tuesday during a hearing of the House Financial Services Committee following the Federal Reserve’s semiannual Monetary Policy Report, released last Friday
Lawmakers’ questions covered a variety of topics, including Warsh’s views on topics from unemployment to prediction markets and his plans for five new task forces looking into how the Fed can improve functions such as communication and data collection
