Warsh: FOMC Not Confident Inflation Moving Toward Target, Summer Data Shows No Improvement

On September 17, Federal Reserve Chair Warsh stated that the FOMC is currently not confident inflation is moving toward the 2% target level, adding that inflation remains too high and has persisted for too long. Warsh noted that economic data released over the summer showed no improvement in the inflation picture, with too many product categories still seeing price increases exceeding 3% over the past 6 and 12 months. He said that at the July meeting, the FOMC unanimously agreed that inflation remains too high and expressed willingness to take action.

Meanwhile, Warsh said the U.S. labor market remains an important signal of economic strength. The unemployment rate remains low, jobs and working hours are both increasing, credit flows remain robust, and the overall economy shows resilience.

[BlockBeats]