Kevin Warsh holds first Fed news conference, rates unchanged
6 reported
Kevin Warsh held his first news conference as Federal Reserve chair after the central bank decided to keep its benchmark interest rates steady. The decision comes as soaring energy prices have pushed inflation to its highest level in more than three years. Consumer prices in May were up 4.2% from a year ago, according to the report. Warsh stated that persistently high prices are a burden for the American people and that the committee will deliver price stability. The average Fed policymaker now projects rates will rise by a quarter point this year, a turnaround from earlier expectations of a quarter-point cut. Warsh announced several task forces to examine how the Fed measures inflation, invests in government bonds, approaches artificial intelligence, and communicates. The Dow Jones Industrial average fell more than 500 points following the news conference.
What’s reported
Kevin Warsh held his first news conference as Federal Reserve chair.
The Fed held its benchmark interest rates steady.
Consumer prices in May were up 4.2% from a year ago.
The average Fed policymaker now projects rates will rise by a quarter point this year.
Warsh announced task forces to study inflation measurement, government bond investment, AI, and communication.
The Dow Jones Industrial average tumbled more than 500 points.
Key figures
Kevin Warsh, Federal Reserve chair
Scott Horsley, NPR reporter
Scott Detrow, NPR host
Sources: NPR
