Since 2012, the Federal Reserve has pursued its dual mandate of maximum employment and price stability with a formally stated inflation target of 2% annual growth.
The last time the U.S. central bank’s preferred inflation gauge, the personal consumption expenditures price index, was at or below 2% was February 2021. That will not fly for the newly minted Fed chair, Kevin Warsh.
“This committee will deliver price stability,” stated Warsh, addressing reporters at the press conference concluding June’s Federal Open Market Committee (FOMC) meeting — his first since succeeding Jerome Powell as Fed boss in late May.
“I’ve said for years, inflation is a choice,” he continued. “You bet it is, and today I’m announcing that this committee unambiguous...