Federal Reserve Watch for July 15: Warsh Repeats FOMC Will Take Ownership of Inflation, Act as Needed

Fed Chairman Kevin Warsh (voter) repeated that the FOMC will take ownership of inflation and take actions if needed to bring it back toward the 2% goal but did not provide forward guidance. Warsh again said that monetary policy caused inflation through its policy and that would not be the case under his leadership, adding that he will make policy decisions independent of political influence. He also noted that AI will likely raise prices but should be followed by productivity gains that will slow that price inflation. Fed Governor Lisa Cook (voter) said it was appropriate to hold interest rates steady at its last meeting to see how inflation progresses, noting that risks continue to be weighted toward higher inflation. She added that she is prepared to act if she does not see signs of disinflation in the near term. New York Fed President John Williams (voter) said that economic growth is solid, and the labor market is stable but noted that inflation remains above the Fed's 2% goal and needs to be brought down. Williams added that the stance of monetary policy is "well positioned" to deal with inflation, which he expects to slow in coming quarters. The Fed's Beige Book.