AP News53%
Warsh says Fed has ‘no tolerance’ for high inflation but provides no hints on next move | AP News 23%
By Christopher Rugaber50%
7/14/2026, 12:36:10 PM
Keywords: Kevin Warsh, Economic Policy, Inflation, Donald Trump, Federal Reserve System, Economic Indicators, Financial Services, Warsh Federal Reserve Inflation, Meta Platforms Inc, Microsoft Corp, Middle East, Iran, Energy Markets, Christopher Waller, Business, Jerome Powell, Iran War, Oil And Gas Industry, John Williams, Lisa Cook, Amazon Com Inc, Alphabet Inc, Gregory Meeks
BS Summary: This article contains 15 faulty reasoning types, including Negativity Bias, Pessimism Bias, and Optimism Bias, with Ambiguity (Equivocation) as the most egregious example at 17.1% saturation with 68 hits. Analysis detected 434 faulty-reasoning hits from 398 analyzed words, generating a BS Score of 35.9% and a BS Rank of 23% (16,476 of 21,159 articles). This article is better (less manipulative) than 77.90% of the article peer group.
Warsh says Fed has ‘no tolerance’ for high inflation but provides no hints on next move
WASHINGTON (AP) — Federal Reserve Chair Kevin Warsh said Tuesday that the Fed will make high inflation “a thing of the past,” yet he provided no signal about the central bank’s next steps.
Fed policymakers “have no tolerance for persistently elevated inflation,” Warsh said in his first appearance before Congress since becoming chair May 22, replacing former chair Jerome Powell.
“And we share a resolute commitment to restoring price stability.”
Still, Warsh heads a sharply divided rate-setting committee, with about half of the 19 policymakers penciling in higher interest rates by the end of the year in forecasts released last month.
Another half have signaled that they support keeping rates unchanged or even cutting them.
Warsh faces a stiff challenge in reconciling the divided committee while navigating a rapidly-changing economic outlook.
Warsh spoke to the House Financial Services Committee soon after the government reported that inflation fell 0.4% from May to June, driven down mostly by cheaper gas prices.
Core inflation — which excludes the volatile energy and food categories — was unchanged last month, a broader slowdown in price increases than economists expected.
Still, the core figure is above the Fed’s 2% target.
The cooling inflation figures reduce pressure on the Fed to combat higher prices by hiking interest rates.
Still, the renewed conflict in the Middle East has already driven up oil prices and could reverse some of the progress on inflation in coming months.
Warsh said Tuesday that AI investment is “the most striking feature of the economy right now” and added that the Fed is “monitoring the implications” for inflation and jobs.
Other Fed officials have stepped in to provide guidance as Warsh has declined to do so.
Fed Governor Christopher Waller on Monday said that another “hot” inflation report Tuesday would mean the Fed would have to consider raising rates “in the near term.”
But last week John Williams, president of the Federal Reserve Bank of New York, said that if core inflation stays at a 0.2% monthly pace for the rest of this year, the Fed could avoid hiking rates.
Williams’ approach implies the Fed would keep rates steady for some time while it monitors incoming data.
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