Kevin Warsh Holds First Fed Press 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 inflation reached its highest level in more than three years, driven by soaring energy prices. Consumer prices in May were up 4.2% from a year ago, according to the article. 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 reversal from earlier expectations of a quarter-point cut. The Dow Jones Industrial average fell more than 500 points following the announcement.
What’s reported
Kevin Warsh held his first news conference as Fed chair after the central bank held interest rates steady.
Inflation is at its highest level in more than three years, with consumer prices up 4.2% from a year ago in May.
The average Fed policymaker now projects rates will rise by a quarter point this year, reversing earlier expectations of a cut.
Warsh announced several task forces to study how the Fed measures inflation, invests in government bonds, approaches AI, and communicates.
Warsh suggested it might be time to dial back communication, citing a mentor who said press conferences should only be held when there is something important to say.
The Dow Jones Industrial average tumbled more than 500 points after the news conference.
Key figures
Kevin Warsh, Federal Reserve chair
Scott Detrow, NPR host
Scott Horsley, NPR correspondent
George Shultz, former mentor of Warsh (mentioned)
Sources: NPR
