Fed chair addresses inflation and says central bank’s job is ‘to deliver stable prices’
Summary
Federal Reserve Chair Kevin Warsh said the Fed is not finished working to control high inflation and that its main job is to keep prices stable. He did not say whether interest rates will go up soon but suggested rates might increase, which differs from President Donald Trump’s calls for rate cuts.Key Facts
- Kevin Warsh spoke at the Fed’s annual meeting in Jackson Hole, Wyoming.
- Inflation in the US is still above the Fed’s 2% target, currently around 3.4%.
- The Fed’s current interest rates are between 3.5% and 3.75%.
- Warsh said the economy has stayed strong despite recent shocks like the war in Iran.
- Warsh ended the Fed’s practice of giving clear future guidance on rate changes.
- Some Fed board members recently wanted to raise rates, but most voted to keep them steady.
- President Donald Trump wants the Fed to lower rates, but economists warn that could increase inflation.
- US government debt recently passed $40 trillion for the first time.
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