Fed's warsh: 'if we get policy right - and we will- the inflation surge of the last five years will be a thing of the past' - prepared remar

Fed's warsh: 'if we get policy right - and we will- the inflation surge of the last five years will be a thing of the past' - prepared remarks to Congress Warsh: underlying inflation over longer time Horizons is determined largely by monetary policy - Fed has no tolerance for persistently elevated inflation - Household consumption growth is moderate; manufacturing output has moved up steadily this year - Housing sector continues to lag - Economic activity is expanding at a solid pace, showing resilience in the face of recent developments - Don’t know the extent to which the economy will benefit from AI buildout - Most striking feature of the economy right now is business investment, which appears to be accelerating and reflects AI projects and spending - Equipment overall increased about 8% in Q1; high-tech spending grew at annualized rate of nearly 25% - Productivity growth has been strong, predating gains from AI adoption - Labor market appears broadly stable - Fed is monitoring implications for inflation and labor market - Have a duty to take a fresh look at current practices to make sure we are serving our objectives - Purpose of task forces is to equip Fed to make better monetary policy decisions, put years of high inflation behind US - Job creation has kept pace with workforce; unemployment rate is low and has changed little over the past year; seeing relatively few layoffs; solid growth in nominal wages - Balance sheet task force will probe advantages and disadvantages of ample reserves regime and explore alternatives