Fed Chair Warsh vows to rid US of 'inflation surge'
- Warsh’s remarks come as the US government reports its latest consumer inflation numbers on Tuesday morning as well
Federal Reserve Chairman Kevin Warsh pledged to Congress that the central bank will tackle the ongoing inflation surge, hinting at potential interest rate hikes despite presidential pressure.
- Fed's strategy to combat inflation.
- Potential interest rate hikes and political pressure.
- Geopolitical events driving recent gasoline price surges.
WASHINGTON: Federal Reserve Chairman Kevin Warsh vowed Tuesday that the central bank will rid the United States of a years-long “inflation surge,” according to prepared remarks of his testimony to Congress.
Warsh is due to appear before lawmakers at 10:00 am (1400 GMT), as markets watch for hints that the central bank might lift interest rates later this year to combat price hikes, despite pressure for a rate cut from President Donald Trump.
“The Fed’s number one objective is to get monetary policy right – or as near to it as we possibly can,” Warsh is due to tell the House Financial Services Committee.
“If we get policy right – and we will – the inflation surge of the last five years will be a thing of the past,” he added.
Warsh’s remarks come as the US government reports its latest consumer inflation numbers on Tuesday morning as well.
US households have been grappling with a surge in gasoline costs since US-Israeli strikes against Iran from late February sparked Tehran’s retaliation in virtually blocking off the crucial Strait of Hormuz.
The waterway is a key path for energy transit, causing oil prices to jump in the weeks that followed.
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