US Federal Reserve Chair Kevin Warsh on Tuesday committed to tackling stubborn inflation in hawkish comments that investors took as a signal borrowing costs are likely to stay higher for longer.<\/p>\n
Warsh sidestepped questions about whether the Fed would raise rates<\/a>, even though lawmakers pressed him. But he again emphasized the Fed\u2019s goal of price stability<\/a> and dismissed a cooler-than-expected inflation report as \u201cjust one datapoint,\u201d adding that he doesn\u2019t want to \u201ccherry-pick data.\u201d <\/p>\n \u201cThere might be some that look at this morning\u2019s data and say, \u2018Oh, mission accomplished, everything is swell,\u2019\u201d Warsh said at a House Financial Services Committee hearing. \u201cThat is not my view.\u201d<\/p>\n Investors had previously begun to bake in future interest-rate hikes, something that President Donald Trump has long advocated against. After the Commerce Department said Tuesday that consumer prices declined last month for the first time in six years, Trump wielded the report as proof that the administration is \u201cdoing a great job\u201d even though the Iran war has since restarted.<\/p>\n Mortgage rates are higher \u201cin part \u2026 because of inflation that has been above the Fed\u2019s objectives,\u201d Warsh said. \u201cWhat we can do in making sure that people are confident that the change in prices is \u2026 at such a level that they don\u2019t have to think about it; they don\u2019t have to talk about it.\u201d\u00a0<\/p>\n \u201cThat is consistent with long-term Treasury yields being lower\u201d and \u201cmortgages being more affordable,\u201d he said.<\/p>\n Asked what he would do if Trump fired him, Warsh said he would \u201ccontinue to do my job.\u201d He\u2019ll testify again Wednesday before the Senate Banking Committee.<\/p>\n","protected":false},"excerpt":{"rendered":"US Federal Reserve Chair Kevin Warsh on Tuesday committed to tackling stubborn inflation in hawkish comments that investors…\n","protected":false},"author":2,"featured_media":763918,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,101],"class_list":["post-763917","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/763917","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=763917"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/763917\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/763918"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=763917"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=763917"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=763917"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}