Kevin Warsh pledges price stability in 1st remarks before lawmakers
Federal Reserve Chairman Kevin Warsh made his first major statement before lawmakers, promising the Fed is serious about keeping prices in check.
He said there is "no tolerance for persistently elevated inflation," and wants to restore price stability.
This comes right after June saw a rare 0.4% drop in consumer prices, mostly thanks to cheaper energy.
Core inflation flat, 2.6% yearly
Even with that dip, core inflation (which leaves out food and energy) stayed flat for the month and grew 2.6% over the year, showing some parts of the economy are still feeling price pressure.
Meanwhile, oil prices have jumped because of U.S.-Iran tensions, and Warsh pointed out that AI is shaking things up, driving investment but also raising concerns about inflation and jobs.
The Fed is keeping interest rates steady for now as it watches all these moving pieces.