Uploaded August 2026 | Updated September 2026, 2 weeks ago
As President Donald Trump brushes off concerns about inflation and insists prices under his administration have fallen, the new leader of America's central bank offered an entirely different outlook in a highly anticipated speech Friday.
Federal Reserve Chairman Kevin Warsh said until he and his colleagues are confident that inflation is moving toward their 2% target rate "clearly and at a sufficient speed," they "have work to do."
It's a reality putting Warsh at odds with the man who appointed him. Trump exerted maximum pressure on former Fed Chair Jerome Powell to cut interest rates, to no avail, but when Warsh was sworn in less than 100 days ago, Trump said he wanted him "to be totally independent." Lately, he seems to be running out of patience.
“When we announce good numbers, which we’re doing all the time, they keep driving the interest rates up because they’re so afraid of inflation and they shouldn’t be. They should allow interest rates to go down," Trump said at a White House event earlier this month.
In an effort to be more agile in an economic landscape Warsh called "anything but static," the chairman highlighted ways in which he planned to lead the Fed differently than his predecessors regarding forward guidance.
"In normal times, the role of forward guidance should be limited and circumscribed. Otherwise, it risks creating ambiguity in the name of clarity. Oversharing policy deliberations and overcommitting to future decisions can lead markets, businesses and households astray," Warsh said.
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As President Donald Trump brushes off concerns about inflation and insists prices under his administration have fallen, the new leader of America's central bank offered an entirely different outlook in a highly anticipated speech Friday.
Federal Reserve Chairman Kevin Warsh said until he and his colleagues are confident that inflation is moving toward their 2% target rate "clearly and at a sufficient speed," they "have work to do."
It's a reality putting Warsh at odds with the man who appointed him. Trump exerted maximum pressure on former Fed Chair Jerome Powell to cut interest rates, to no avail, but when Warsh was sworn in less than 100 days ago, Trump said he wanted him "to be totally independent." Lately, he seems to be running out of patience.
“When we announce good numbers, which we’re doing all the time, they keep driving the interest rates up because they’re so afraid of inflation and they shouldn’t be. They should allow interest rates to go down," Trump said at a White House event earlier this month.
In an effort to be more agile in an economic landscape Warsh called "anything but static," the chairman highlighted ways in which he planned to lead the Fed differently than his predecessors regarding forward guidance.
"In normal times, the role of forward guidance should be limited and circumscribed. Otherwise, it risks creating ambiguity in the name of clarity. Oversharing policy deliberations and overcommitting to future decisions can lead markets, businesses and households astray," Warsh said.
_______________
Stay up to date with our social media:
facebook.com/KOMONews
twitter.com/komonews
instagram.com/komo4
tiktok.com/@komo4seattle
Download our iOS App: itunes.apple.com/us/app/komo-news-mobile/id433508161?mt=8
Download our Android App: play.google.com/store/apps/details?id=com.newssynergy.komo&hl=en
Have a news tip? Send it directly to us:
Email us: tips@komonews.com
Call the Newsroom: 206.404.4000
KOMO News (ABC 4) provides the latest breaking news, sports, weather, traffic, and local event coverage in the Seattle and Western Washington/Puget Sound area, including Bellevue, Redmond, Renton, Kent, Tacoma, Bellingham, Yakima, and surrounding communities.
This video and all Sinclair Broadcast Group content archives of local news and sports coverage are available for your use. For more information, contact us at contentsales@sbgtv.com
#komo #komonews #komo4 #komo4news #seattle #seattlenews #washingtonnews
