Bankless · Friday, July 31, 2026
New Federal Reserve Chair Kevin Warsh has emphasized that there is 'no soft inflation target,' and the committee's sole focus is 2%. He indicated that interest rates could be adjusted upwards if inflation remains elevated, signaling a hawkish stance despite holding rates steady in his first FOMC meeting.
“Let me reiterate, he said, there is no soft inflation target. There is no soft implicit target, not on this committee's watch. There's only a target and it's 2%.”
“If inflation continues to be elevated through the forecast period, interest rates could well be part of the solution.”
“So if he's not raising rates, then does he think inflation is defeated?”