Kevin Warsh holds first Fed press conference, rates unchanged
8 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 consumer prices in May rose 4.2% from a year ago, the highest inflation level in more than three years, driven by soaring energy prices. 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. 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 highest in more than three years.
Soaring energy prices pushed inflation to its highest level in over three years.
The average Fed policymaker now projects rates will rise by a quarter point this year.
Earlier in the war, the average Fed policymaker expected rates to fall by a quarter point.
Warsh announced task forces to study inflation measurement, government bond investments, AI and productivity, 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
George Shultz, former mentor of Warsh (mentioned)
Sources: NPR
