In his eagerly awaited speech at the Federal Reserve’s economic symposium in Wyoming, Warsh made clear that the central bank would continue to fight inflation resolutely. “Here is my yardstick: We must be convinced that underlying inflation is moving toward our target – clearly and at sufficient speed,” he said according to the speech text. “Otherwise, we still have work to do.”
Recent economic data showed a slight cooling, but Warsh sees no trend reversal in this. In July, inflation in the US stood at 3.4 percent, remaining above the 2 percent target for more than five years. Already at the rate decision in late July, three of the twelve voting members of the central bank’s board had openly supported another hike; Warsh abstained at the time.
US Donald Trump had installed Warsh in May to push through significant rate cuts. However, the Iran war triggered by Trump is driving up energy prices and thus inflation. Since December 2025, the Fed has kept the key interest rate unchanged at 3.5 to 3.75 percent. The speech pushed the DAX to a record high of 26,580.64 points, while the euro weakened against the dollar.
Source: www.spiegel.de
