Warsh Tells ECB Forum Fed Will 'Disappoint' Anyone Tolerating Above-2% Inflation; Independence Reaffirmed
- At the ECB Forum in Sintra on July 1, Fed Chair Kevin Warsh said prices remain "too high" and that he would "disappoint" anyone expecting the Fed to tolerate inflation above its 2% target, per Bloomberg and Reuters coverage.
- He declined to pre-commit on the July 28–29 FOMC meeting, saying the committee will "chart a new course" rather than rely on prior guidance, while inflation risks and short-term expectations have eased in recent weeks.
- Warsh forcefully defended Fed independence from political pressure, including from President Trump's rate-cut demands, leaving yields little changed near 4.50% and leaving markets split on a possible 2026 rate hike.