Warsh Makes 'Most Extensive' Comments on US Economy Since Becoming Fed Chair

Federal Reserve Chair Kevin Warsh spoke at the banking body's annual conference in Wyoming, on Friday, for the first time since President Trump tapped him for the role and in his remarks, he made his "most extensive" comments yet on the way the U.S. economy is running. 

Of great interest to many appears to be Chairman Warsh's take on the long-term trend of high inflation:

Mr. Warsh, delivering his first address to the world’s leading economic policymakers at the Fed’s annual conference in Jackson, Wyo., affirmed that the central bank is chiefly focusing on getting inflation down after half a decade of it overshooting the Fed’s 2 percent target.

The Fed would not waver on that goal, Mr. Warsh said, although he stopped short of saying whether the current moment required higher interest rates.

...

The comments are Mr. Warsh’s most extensive to date about the economy since taking over the Fed’s top job in May amid a confluence of risks. They range from a protracted Iran war that has worsened the trajectory of inflation to rising Treasury yields that prompted surprise interventions recently from Treasury Secretary Scott Bessent.

Fed Chairman Kevin Warsh said during his Jackson Hole speech, "On the employment side of the Fed's dual mandate, the country is doing well." pic.twitter.com/WkF2d9itmX

— Yahoo Finance (@YahooFinance) August 28, 2026

He assured the attendees, according to prepared remarks, that “[t]he responsibility for 65 months of sustained, elevated inflation sits squarely with the central bank — and that is where it belongs,” adding that his "standard...[is that The Fed] must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed.” 

"Otherwise, we have work to do,” Warsh said.

CNBC analyst Matt Peterson described the Fed chair's comments at Jackson Hole as "a more hawkish reading of the economy" than when he spoke at the second central bank meeting in July 

He said elevated prices needed to be the Fed’s main focus and described financial conditions as not being broadly restrictive, a change from his July news conference, when he said they were uneven. He did that while swiping back at his critics and insisting his policy of deliberate ambiguity about Fed policy is here to stay. 

“We can be held accountable for delivering on our remit — the only true test of our credibility,” Warsh said, dismissing widely echoed critiques that he had come across as not credible at his July news conference. 

Warsh also spoke about the latest consumer price index (CPI) report:

Warsh also referred to another gauge of inflation, the consumer price index, which is running at 3.4%.

“None of these measures are perfect, but they all tell a similar story: Inflation is running above our 2 percent target,” he said.

Peterson continued: 

Warsh also addressed another critique of his performance in July — that he wouldn’t turn quickly to interest rates to fight inflation. President Donald Trump — who has made clear his desire for lower rates — picked Warsh. At Jackson Hole, Warsh was unambiguous: “short-term interest rates are the predominant tool to achieve the dual mandate.”

You can read more of Warsh's remarks here.

Editor's Note: President Trump is leading America into the "Golden Age" as Democrats desperately try to stop it.  

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