New Fed Chair Warsh Pledges to Fight Inflation in First Senate Testimony
7 reported3 unconfirmed
Federal Reserve Chairman Kevin Warsh testified before the Senate Banking Committee for the first time since taking over at the central bank, vowing to bring inflation under control. Warsh stated that high inflation has been an undue burden on American households and businesses, and that the Fed has no tolerance for persistently elevated inflation. He also discussed the job market and potential fallout from the artificial intelligence boom. Warsh has moved quickly to set up several task forces led by outside experts, including one charged with examining AI and its investment boom, which he called the most consequential change in his lifetime. He declined to signal specific interest rate plans and avoided answering a question from Senator Chris Van Hollen about whether he has spoken to President Trump about rates, stating only that he is not taking orders from the White House.
What’s reported
Kevin Warsh testified before the Senate Banking Committee on Wednesday, July 15, 2026, for the first time since becoming Fed chairman.
Warsh pledged to bring inflation under control, calling it an undue burden on households and businesses.
June saw encouraging news on retail and wholesale prices, partly due to a drop in energy prices from a ceasefire in the Strait of Hormuz, though tensions have rekindled in July.
Warsh did not offer a projection of where interest rates are going and ducked a question about speaking to President Trump on rates.
Warsh stated he is not taking orders from the White House, saying, "They chose an independent guy to do an independent job."
He has set up task forces, including one on artificial intelligence, which he called the most consequential change in his lifetime.
Warsh acknowledged AI could be disruptive and put some jobs at jeopardy, but offered no guarantee of comfort.
Open questions
Whether Warsh has spoken to President Trump about interest rates.
What specific interest rate decisions the Fed will make at its upcoming meeting.
How the AI task force's recommendations will affect Fed policy.
Key figures
Kevin Warsh, Chairman of the Federal Reserve
Chris Van Hollen, Democratic Senator
Scott Horsley, NPR reporter
Ailsa Chang, NPR host
Sources: NPR
