Warsh Vows Inflation Fight, Stays Mum on Rate Hikes
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- Kevin Warsh told Congress on Tuesday the Fed is determined to bring inflation down but offered little guidance on whether interest rate hikes will follow to achieve that goal.
- Warsh has sought to end the Fed's modern practice of giving clear forward guidance, pledging a policy "regime change" to rid an inflation "tax" on Americans.
Why it matters: Warsh's silence on the Fed's rate path, paired with his push to scrap forward guidance, gives investors and lawmakers only a promise that inflation will be beaten — with no map for how high borrowing costs go next.
