{"id":2631039,"date":"2026-07-17T07:45:01","date_gmt":"2026-07-17T11:45:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-is-laser-focused-on-inflation-drop-warsh-says\/"},"modified":"2026-07-17T07:48:38","modified_gmt":"2026-07-17T11:48:38","slug":"fed-is-laser-focused-on-inflation-drop-warsh-says","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-is-laser-focused-on-inflation-drop-warsh-says\/","title":{"rendered":"Fed is laser-focused on inflation drop, Warsh says"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffed-is-laser-focused-on-inflation-drop-warsh-says%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2631039&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Federal Reserve Chairman Kevin Warsh has reaffirmed the central bank&#8217;s commitment to lowering inflation to its 2% target, emphasizing that their primary goal is to restore price stability. warsh, who took over as Fed chairman in May, discussed this during a hearing before the House Financial Services Committee, highlighting that the Fed&#8217;s focus remains on controlling inflation and supporting maximum employment. He stressed the importance of maintaining Fed independence from political influence and dismissed notions of the Fed overstepping its mandate into issues like climate change.<\/p>\n<p>Warsh noted that the Fed\u2019s approach involves raising interest rates to curb inflation, which has been a concern due to sustained elevated prices over the past five years. Despite political pressures, he assured that the Fed will continue to prioritize its statutory objectives. during the hearing, Warsh also addressed concerns about potential interference from President Trump, reaffirming the Fed&#8217;s independence.<\/p>\n<p>In related economic news, the Bureau of Labor statistics reported a 0.4% decrease in consumer prices in June,mainly due to falling gas prices linked to geopolitical developments,though oil prices have recently risen again,casting uncertainty on inflation trends. While this decline is positive, inflation remains above the fed\u2019s 2% target, and many expect the possibility of an interest rate hike later this year. <\/p>\n<p>The broader economic context shows a resilient labor market, with <a href=\"https:\/\/amzn.to\/3YuVZYV\" >recent data indicating strong job growth<\/a> and low unemployment. Although some family costs like food and housing continue to rise, others like used cars and certain goods have seen price decreases. Experts believe inflation signs are easing but caution that heightened energy prices and geopolitical tensions could complicate future inflation control efforts. the Fed remains vigilant, and policymakers are prepared for potential adjustments to interest rates to balance economic growth and price stability.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<article class=\"fn-body\">\n<p class=\"wp-block-paragraph\">\n<p class=\"wp-block-paragraph\">Federal Reserve Chairman <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/kevin-warsh\/\">Kevin Warsh<\/a> has vowed that the central bank is fully committed to lowering <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/inflation\/\">inflation<\/a> to its 2% target.<\/p>\n<section class=\"explore-more-section\" id=\"wex-recommended-widget\">\n<div class=\"magazine-container single\">\n<h1 class=\"magazine-title mt-2\">Recommended Stories<\/h1>\n<p>             <i class=\"fa-solid fa-play icon\"><\/i>         <\/div>\n<div class=\"explore-grid\">\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/business\/4652182\/truth-social-banks-fastest-access-trump-posts\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Truth Social to offer banks \u2018fastest\u2019 access to market-moving Trump posts<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a 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block Paramount-Warner Bros. merger<\/h3>\n<p>                         <\/a>                     <\/div>\n<\/p><\/div>\n<\/section>\n<p class=\"wp-block-paragraph\">Warsh, who replaced <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/jerome-powell\/\">Jerome Powell<\/a> as Fed chairman in May, testified July 14 before the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/house-financial-services-committee\/\">House Financial Services Committee<\/a>, where he was repeatedly asked about the Fed\u2019s efforts to drive inflation down after years of too-hot price growth.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-1\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-1\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-15\" data-wex-ad=\"art-dsk-inart-1\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">Despite President <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/donald-trump\/\" type=\"post_tag\" id=\"4\">Donald Trump\u2019s<\/a> desire for the Fed to lower rates, Warsh reiterated that his No. 1 goal right now is to see inflation return to healthy levels.<\/p>\n<div class=\"article-paywall\">\n<p class=\"wp-block-paragraph\">Warsh said that at his first Fed meeting as chairman, there was \u201cno willingness to tolerate higher prices.\u201d<\/p>\n<p class=\"wp-block-paragraph\">\u201cThere was a commitment that was unambiguous and unanimous that we\u2019re going to deliver,\u201d the chairman said. \u201cAnd we\u2019re not finding acceptable the higher inflation that has endured in this country for more than five years.\u201d<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-2\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-2\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-16\" data-wex-ad=\"art-dsk-inart-2\"><\/div>\n<\/div>\n<\/div>\n<figure class=\"wp-block-image size-large is-resized\">Federal Reserve Chairman\u00a0Kevin Warsh. (Washington Examiner illustration; Getty Images)<\/p>\n<p>&#8221; data-large-file=&#8221;https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/\/2026\/07\/localimages\/biz-0722.jpg?w=696&#8243; height=&#8221;683&#8243; width=&#8221;1024&#8243; &#8220;https:><figcaption class=\"wp-element-caption\">Federal Reserve Chairman\u00a0Kevin Warsh. (Washington Examiner illustration; Getty Images)<\/figcaption><\/figure>\n<p class=\"wp-block-paragraph\">The Fed has what is referred to as a dual mandate: price stability and maximum employment. When inflation is rising, the major tool to fix it is raising <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/interest-rates\/\" type=\"post_tag\" id=\"727\">interest rates<\/a>. In general, Fed officials hope that higher rates will lead to less borrowing and spending, thereby lowering inflationary pressures.<\/p>\n<p class=\"wp-block-paragraph\">The Fed also has long had a 2% target for inflation. During the hearing, Warsh said he was on Capitol Hill to \u201cdouble down\u201d on that commitment to bringing inflation down to that level. But the chairman also acknowledged how <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/consumers\/\" type=\"post_tag\" id=\"2437\">consumers<\/a> are feeling pinched by years of high inflation.<\/p>\n<p class=\"wp-block-paragraph\">\u201cAs we discuss privately, I\u2019ll say publicly: My broader definition of price stability is a change in prices such that households and businesses don\u2019t have to worry about it, don\u2019t have to think about it,\u201d Warsh told lawmakers.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-3\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-3\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-17\" data-wex-ad=\"art-dsk-inart-3\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">Warsh has spoken frequently about his desire to return the Fed to its core remit and has said he believes the Fed has strayed from its mandate in recent years. The chairman has said he thinks the Fed under previous leadership has pressed beyond its statutory authority, for instance, into climate change policy.<\/p>\n<p class=\"wp-block-paragraph\">Rep. Roger Williams (R-TX) asked about how Warsh intends to ensure the Fed stays focused on things such as inflation and employment.<\/p>\n<p class=\"wp-block-paragraph\">\u201cI can make that commitment to you, congressman, because that\u2019s how we keep politics out,\u201d Warsh told the panel. \u201cThat\u2019s how we stay independent in the conduct of monetary policy. The <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/federal-reserve\/\" type=\"post_tag\" id=\"726\">Federal Reserve<\/a> is not a repair shop for broken statutes, or we aren\u2019t empowered to go wander into areas outside of our remit.\u201d<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-4\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-4\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-25\" data-wex-ad=\"art-dsk-inart-4\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">During the hearing, Warsh was also repeatedly asked about Fed independence and his ability to silo the unique federal agency from influence from the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/section\/news\/white-house\/\" type=\"category\" id=\"125\">White House<\/a>.<\/p>\n<p class=\"wp-block-paragraph\">Rep. Nydia Velazquez (D-NY) asked Warsh whether he believes that he works for Trump.<\/p>\n<p class=\"wp-block-paragraph\">\u201cIf I\u2019m permitted to say, we\u2019re an independent central bank,\u201d he responded. \u201cWe\u2019re honored to be independent. Our independence came from you.\u201d<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-5\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-5\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-26\" data-wex-ad=\"art-dsk-inart-5\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">He was also asked what he would do if Trump targeted him or fellow Fed governors because he was upset about interest rate policy.<\/p>\n<p class=\"wp-block-paragraph\">\u201cI would continue to do my job,\u201d Warsh said.<\/p>\n<p class=\"wp-block-paragraph\">Also, while Trump frequently criticized Powell for not cutting interest rates, he has seemed to back off on such an aggressive posture with Warsh for the time being.<\/p>\n<p class=\"wp-block-paragraph\">The <em>Washington Examiner<\/em> spoke with Trump by phone on July 10, and the president indicated that he will defer to Warsh on interest rates.<\/p>\n<p class=\"wp-block-paragraph\">\u201cThere should be a reduction, but I\u2019ll go with the chairman,\u201d Trump said.<\/p>\n<h2 id=\"h-some-good-inflation-news-already\" class=\"wp-block-heading\">Some good inflation news already<\/h2>\n<p class=\"wp-block-paragraph\">On the same day as Warsh\u2019s Capitol Hill testimony, the Bureau of Labor Statistics reported its update to the\u00a0consumer price index. In June alone, prices fell by 0.4%, the largest such decrease since 2020.<\/p>\n<p class=\"wp-block-paragraph\">The decline in prices in the month was caused primarily by a 10% drop in the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/gas-prices\/\" type=\"post_tag\" id=\"940\">price of gas<\/a>, which was downstream of the resumption of\u00a0oil\u00a0tanker traffic through the Strait of Hormuz, a key global supply chokepoint, following the agreement between the United States and Iran.<\/p>\n<p class=\"wp-block-paragraph\">But the relief may be short-lived. <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/oil\/\" type=\"post_tag\" id=\"292\">Oil prices<\/a> have popped back up in recent days as that agreement has eroded and tankers have faced threats transiting the strait, leaving uncertainty about the trajectory of gasoline prices.<\/p>\n<p class=\"wp-block-paragraph\">\u201cThis is great news for Kevin Warsh and the Fed,\u201d said David Russell, global head of market strategy at TradeStation. \u201cEveryone expected energy to drop, but there was also good news in car prices, shelter, and apparel. However, these trends might not last if renewed conflict in the Middle East lifts oil prices. Disinflation gets harder going forward if energy doesn\u2019t keep falling.\u201d<\/p>\n<p class=\"wp-block-paragraph\">The report is welcome news for the Trump administration, which has been working to highlight any progress in lowering inflation. Still, inflation is above the Federal Reserve\u2019s target of 2%, and many investors and Fed watchers expect an interest rate increase this year.<\/p>\n<p class=\"wp-block-paragraph\">The bump in inflation since the start of 2026 was driven in large part by higher energy prices, which have soared since the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/iran\/\" type=\"post_tag\" id=\"100\">Iran<\/a> war began.<\/p>\n<p class=\"wp-block-paragraph\">Trump has seen his <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-held-at-2-4-in-february-as-affordability-woes-persist\/\" title=\"... held at 2.4% in February as affordability woes persist\">economic approval ratings fall dramatically<\/a> since he entered office, in large part because of voter discontent with affordability issues. The higher inflation this year threatens to imperil Republicans in the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/2026-election\/\" type=\"post_tag\" id=\"11675\">midterm elections<\/a>.<\/p>\n<p class=\"wp-block-paragraph\">Core inflation, a measure that strips out volatile food and energy prices, fell three-tenths of a percentage point to 2.6% for the year ending in June.<\/p>\n<p class=\"wp-block-paragraph\">Families are feeling the strain of higher prices for goods and services they use routinely. For instance, restaurant prices have gone up 3.4% in just the past year. The price of beef and veal has risen nearly 12% over the past year. Fruit and vegetable prices have increased by 5.3%, on average.<\/p>\n<p class=\"wp-block-paragraph\">Clothing prices have risen by 3.9%, and electricity prices have risen 4%.<\/p>\n<p class=\"wp-block-paragraph\">On the other hand, families looking to buy cars are seeing some relief. Used car prices have fallen 1.8% from June 2025, and new car prices have been flat over the past year. Chicken prices have also fallen more than 2%, and butter has dropped by 8.7%.<\/p>\n<p class=\"wp-block-paragraph\">This latest CPI report comes after the Fed voted to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sp-500-nasdaq-futures-rise-as-investors-pin-hopes-on-fed-pause\/\" title=\"S&amp;P 500 and Nasdaq futures up on hopes of Fed pause.\">hold interest rates steady<\/a> at its meetings in January, March, April, and at new Fed Chairman Warsh\u2019s first meeting in June.<\/p>\n<p class=\"wp-block-paragraph\">Given the hotter inflation prints in recent months, investors think the odds of a rate cut this year are essentially nonexistent. In fact, a rate increase might even be on the table, given the higher inflation and underlying strength in the labor market.<\/p>\n<p class=\"wp-block-paragraph\">Despite the higher inflation rate, experts don\u2019t think the country is at the beginning of another massive inflation tsunami as was experienced in 2021 and 2022, which saw annual price growth pushing as high as 9%.<\/p>\n<p class=\"wp-block-paragraph\">When inflation began spiking in early 2021, the economy was emerging from the pandemic, and the government was pumping stimulus money into the economy while the Fed held interest rates near zero for an extended period.<\/p>\n<p class=\"wp-block-paragraph\">One factor boosting the odds that the Fed increases rates in the next few months is that the labor market has remained resilient.<\/p>\n<p class=\"wp-block-paragraph\"><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/4643633\/trump-defer-warsh-rate-hike-fed-midterms\/\"><strong>TRUMP SAYS HE WILL DEFER TO FED CHAIRMAN KEVIN WARSH ON RATE HIKE BEFORE MIDTERM ELECTIONS<\/strong><\/a><\/p>\n<p class=\"wp-block-paragraph\">The economy has added jobs at a pace strong enough to keep unemployment trending down. The economy <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/www.washingtonexaminer.com\/news\/4633353\/economy-adds-jobs-june-fewer-expected\/\">added 57,000 jobs<\/a> last month.<\/p>\n<p class=\"wp-block-paragraph\">The unemployment rate fell one-tenth of a percentage point to 4.2%, the Bureau of Labor Statistics reported on July 2. That is low by historical standards.<\/p>\n<p class=\"wp-block-paragraph\"><em>Zach Halaschak (<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/x.com\/zhalaschak\" type=\"link\" id=\"x.com\/zhalaschak\">@zhalaschak<\/a>) is the economics reporter for the <\/em>Washington Examiner<em>.<\/em> <\/p>\n<\/div>\n<\/article>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Warsh commits to lowering inflation to 2% target<\/p>\n","protected":false},"author":3360,"featured_media":2631040,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/07\/biz-0722.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[51942,32663,5708,38541,73552],"class_list":["post-2631039","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-economic-outlook","tag-federal-reserve","tag-inflation","tag-monetary-policy","tag-warsh"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/07\/biz-0722.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2631039","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3360"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2631039"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2631039\/revisions"}],"predecessor-version":[{"id":2631043,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2631039\/revisions\/2631043"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2631040"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2631039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2631039"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2631039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}