Analysis suggests Fed Chair Warsh's 'regime change' promise to defeat inflation faces challenges, with July PCE at 3.7% and Warsh himself acknowledging more work is needed.
A recent analysis evaluates Federal Reserve Chair Kevin Warsh's performance since taking office on May 22, noting that despite his promise of a policy 'regime change' to conquer inflation, the Fed's preferred inflation gauge, the personal consumption expenditures (PCE) price index, rose 3.7% in the year through July 2026. Warsh, who has launched five policy task forces and reduced communication hints, acknowledged at the August 28 Jackson Hole meeting that underlying inflation had not meaningfully improved and that the Fed 'would have work to do' without clearer evidence of a return to the 2% target. Market expectations for a September 16 rate hike have risen to over 66% as of September 1.
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