Federal Reserve Chair Kevin Warsh vowed to curb high inflation straining American consumers and companies, affirming the central bank's commitment to restore price stability.
Speaking before a US House of Representatives committee on Tuesday, Warsh said that the members of the Federal Open Market Committee "have no tolerance for persistently elevated inflation."
"If we get policy right -- and we will -- the inflation surge of the last five years will be a thing of the past," Warsh said.
The Fed's preferred inflation metric -- the personal consumption expenditures price index excluding food and energy -- accelerated to 3.4% in May, the fastest reading in more than two years, government data showed late last month. That's well above the the Fed's 2% goal.
"My (FOMC) colleagues and I recognize that high inflation has been an undue burden on American households and businesses," Warsh said. "While monthly price fluctuations are inevitable -- especially in an unsettled world -- underlying inflation over longer time horizons is determined largely by monetary policy."
Last month, the Fed kept its monetary policy steady, marking its fourth consecutive pause and removing the language suggesting an easing bias from its policy statement. They also raised interest rate expectations through 2028.
On Monday, Fed Governor Christopher Waller said in a speech that they may have to consider raising interest rates if inflation remains high.
Warsh remarks come as official data on Tuesday showed the US consumer price index fell more than expected in June on a sequential basis as gasoline prices dropped.
There is now an 88% likelihood that the Fed will keep its monetary policy unchanged later this month, up from 58% on Monday, according to the CME FedWatch tool.
Warsh on Tuesday described the US labor market as "broadly stable."
