Fed Chair Warsh said policymakers remain fully committed to restoring price stability and will not tolerate persistently elevated inflation, according to prepared remarks released ahead of his Semiannual Monetary Policy Report to Congress. Warsh added, “If we get policy right — and we will — the inflation surge of the last five years will be a thing of the past.”
The Fed Chair also stated that the US economy continues to expand at a solid pace, demonstrating resilience despite recent developments. Household consumption is growing at a moderate rate, while manufacturing output has increased steadily this year. He identified business investment as the economy’s most notable area of strength, led in particular by the construction of data centers and strong demand for AI-related equipment and software.
On the labor market, Warsh noted that job creation has kept pace with labor force growth, the unemployment rate remains low, and nominal wages continue to register solid gains.
