Fed's Warsh says inflation expectations and risks have come down

Fed Governor Kevin Warsh said inflation expectations and risks have fallen in recent weeks, reiterating the Fed's commitment to its 2% target.

Capital Post 01/07/2026 14:28

Fed's Warsh says inflation expectations and risks have come down — Fed's Warsh: inflation expectations, risks down

Federal Reserve Governor Kevin Warsh stated on Tuesday that inflation expectations and inflation risks have declined in recent weeks, reaffirming the central bank's dedication to bringing inflation down to its 2% goal.

Comments at Sintra Panel

Speaking at a panel debate in Sintra, Portugal, Warsh said: "Expectations of inflation over the first four months, first four weeks of this period, they’ve come down; inflation risks have come down."

Commitment to Price Stability

Warsh emphasized that the Fed will not waver from its objective. "If there were people in households or the business sector, in the financial markets, who thought that this central bank was going to be comfortable with an inflation objective above 2% – well, I guess they’d be disappointed: We’re going to deliver price stability in the US," he added.

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The remarks come as markets closely watch Fed signals on the path of interest rates. Warsh's comments suggest that recent data has been encouraging, but the Fed remains vigilant.