Following his inaugural Federal Open Market Committee (FOMC) meeting as Federal Reserve chairman in June, Kevin Warsh spoke emphatically about taming inflation, which has remained above the U.S. central bank’s 2% target for more than five years.
“I’ve said for years, inflation is a choice,” Warsh told reporters following the June FOMC gathering. “You bet it is, and today I’m announcing that this committee unambiguously and unanimously have decided we are going to deliver on that.”
The Fed typically raises interest rates when inflation runs too hot and cuts rates when the economy stalls and the labor market shows signs of stress.
In the intermeeting period, the Fed’s preferred inflation gauge posted 4.1% growth for the 12 months ending in Ma...