Kevin Warsh vowed in his first meeting as Federal Reserve chair to contain an inflationary surge fuelled by Donald Trump’s Iran war, triggering a drop in US government bonds as traders cranked up bets on interest rate rises.
Warsh promised in a press conference following the Fed meeting on Wednesday that the central bank “will deliver price stability”. His remarks echoed the Fed’s statement that focused on taming inflation even while it kept rates on hold for the fourth meeting in a row.
“Persistently high prices are a burden for the American people. But the recent past need not be prologue,” Warsh said, making clear that inflation remained a risk despite the deal between Washington and Tehran sparking a fall in oil prices in recent days.