July 14, 2026 at 2:44:36 PM UTC
Warsh calls for “humility” and a willingness to reconsider the Fed’s views
Excellence and integrity define the Fed’s culture, Warsh said, but so does humility about what policymakers know and the courage to reconsider their past positions. He said his job is to maintain those standards while pushing the organization to take a fresh look at current practices.
July 14, 2026 at 2:44:36 PM UTC
Warsh says biggest drop in inflation since 2020 proves ‘inflation is a choice’
Consumer prices posted their biggest monthly decline since 2020, and Warsh used the moment to paint a tough stance. His message to lawmakers is that inflation is not just an accident, but a political consequence.
“Our first goal is to get monetary policy right, or as close to it as possible,” he said, adding that inflation over longer periods of time is largely determined by the Fed’s choices.
He went further than his prepared remarks suggested. “If we get the policy right, and I can assure you we will, the high inflation of the past five years will be a thing of the past.”
July 14, 2026 at 2:28:38 UTC
Housing is lagging while the rest of the economy remains flat, Warsh says
Warsh described household consumption as moderate and that manufacturing production was rising steadily this year. The housing sector was the exception, as its performance remained below the broader expansion. He said the Fed is monitoring how the AI investment boom affects inflation and the labor market.
July 14, 2026 at 2:20:47 PM UTC
Warsh points to AI spending as a prominent economic force
Business investing is the most surprising part of the current economy, Warsh said. Equipment spending rose nearly 8% year over year during the first quarter, driven by data center construction and AI-related demand. He told lawmakers that high-tech investment alone grew about 25% quarter-on-quarter.
July 14, 2026 at 2:16:55 PM UTC
Warsh pledges that high inflation will end
Warsh made his clearest promise yet regarding prices. “If we succeed in setting the right policy, and we will, the high inflation of the past five years will be a thing of the past,” he said, describing this goal as the single clearest goal for the Fed going forward.
July 14, 2026 at 2:16:55 PM UTC
Warsh: “Today we are at a turning point in history”
Warsh told lawmakers that the Fed faces a critical moment. He said: “Today we are at a turning point in history,” adding that it is the responsibility of this generation of policymakers to maintain the performance of the American economy at its best. He framed the semi-annual report as an essential accountability mechanism, not a discretionary compliment.
July 14, 2026 at 2:16:55 PM UTC
Wershe’s book begins with a tribute to Alan Greenspan
Warsh began his testimony before the House by honoring Alan Greenspan, who died last month at age 100. He noted that Greenspan had appeared before Congress more than two hundred times and recalled his “strong and steady hand” during a period of rapid economic change. Warsh called it an honor to represent his colleagues at the Fed in his first appearance before the committee.
July 14, 2026 at 1:59:42 UTC
Warsh faces two days down the hill as inflation declines but remains high
Kevin Warsh, five weeks into his four-year term as Federal Reserve Chairman, opened his first semiannual testimony before the House Financial Services Committee on Tuesday. It returns for a second round before the Senate Banking Committee on Wednesday.
The timing puts energy markets front and center. The US-Israeli conflict with Iran continues to keep policymakers on alert to face new price shocks. The June CPI report showed inflation slowing as tensions in the region briefly eased, yet the reading was still well above the Fed’s 2% target.
