Warsh promises inflation will be a 'thing of the past,' cites benefits of AI investment boom
Federal Reserve Chairman Kevin Warsh pledged Tuesday to "get monetary policy right" and defeat the inflation that has bedeviled the central bank for the...
Key points
- Federal Reserve Chairman Kevin Warsh pledged Tuesday to "get monetary policy right" and defeat the inflation that has bedeviled the central bank for the past five years.
- In remarks for delivery to separate congressional panels this week, Warsh reiterated his recent tough talk on inflation, while also touting the strength of the U.S.
- "And if we get policy right — and we will — the inflation surge of the last five years will be a thing of the past." The remarks come just two months into Warsh's term.
- Warsh takes over a Fed that has scene inflation exceed its 2% mandate since 2021.
What happened
Federal Reserve Chairman Kevin Warsh pledged Tuesday to "get monetary policy right" and defeat the inflation that has bedeviled the central bank for the past five years. In remarks for delivery to separate congressional panels this week, Warsh reiterated his recent tough talk on inflation, while also touting the strength of the U.S. "And if we get policy right — and we will — the inflation surge of the last five years will be a thing of the past." The remarks come just two months into Warsh's term. Warsh takes over a Fed that has scene inflation exceed its 2% mandate since 2021. And we share a resolute commitment to restoring price stability." On broader conditions, Warsh said the economy "is expanding at a solid pace, showing resilience in the face of recent developments." He pointed to business investment that he called "the most striking feature" of the current climate. "Yet it seems inevitable that what is now called 'AI investment' will soon be called just 'investment.'" Warsh previously has said he expects an AI productivity boom will prove disinflationary — a premise challenged by some economists as well as his fellow Fed policymakers.
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