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Federal Reserve Chair Warsh Says 'No Tolerance' for Inflation at FOMC

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Federal Reserve Chairman Kevin Warsh will say Tuesday in prepared testimony before the House Financial Services Committee that the Federal Open Market Committee is aware of the pain that elevated inflation causes consumers and that it will remain focused on it, according to a statement released by the Federal Reserve.

"The members of our Committee have no tolerance for persistently elevated inflation," Warsh said in his prepared opening statement. "And we share a resolute commitment to restoring price stability. This was the focus of our June meeting, at which we decided to hold the target range for the federal funds rate at 3-1/2 to 3-3/4%."

Warsh's comments follow a consumer price report for June Tuesday morning that showed an energy-led 0.4% decline in the overall index and a flat reading for core prices, slowing the year-over-year rates considerably, though they remain above the Fed's 2% target.

"The Fed's number one objective is to get monetary policy right -- or as near to it as we possibly can," Warsh said. "That is our clear and constant aim, the star we steer by. And if we get policy right -- and we will -- the inflation surge of the last five years will be a thing of the past."

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