New Fed Chair Kevin Warsh Promised a Policy "Regime Change" to Defeat Inflation When He Took Over in January 2026. Has He Delivered?
Yahoo Finance ·
New Federal Reserve Chair Kevin Warsh initially promised a "regime change" at the central bank to conquer inflation. A bit more than 100 days into his tenure, the Fed is changing, with a new set of communications policies that leave the market with fewer signals about what to expect. But the Fed's preferred gauge of inflation, the personal consumption expenditures (PCE) price index, rose 3.7% in the year through July 2026, casting doubt on the idea that inflation is trending toward the institution's long-term target of 2%. So has Warsh delivered on what he promised? Image source: Official White House photo by Daniel Torok. Since taking office on May 22, Warsh has launched five policy task forces, shortened the post-meeting policy statement delivered to the financial media, and generally refused to offer as many hints about how the Fed will act as predecessor Jerome Powell did. The Federal Open Market Committee (FOMC) has met twice under Warsh's tenure so far, and both times, the interest rate was held steady. A fig leaf for those decisions, despite consistently elevated inflation readings, was that the Consumer Price Index (CPI), another important top-level inflation measure, fell slightly in July, reaching 3.4% over the prior 12 months, down from 3.5% in June.
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