Warsh pledges Fed policy 'regime change' to end inflation 'tax' on Americans
Kevin Warsh pledged Tuesday to "get monetary policy right" and defeat the inflation that has bedeviled the central bank for the past five years. His remarks also pointed to the benefits the artificial-intelligence investment boom is delivering to the broader economy.
Kevin Warsh pledged Tuesday to "get monetary policy right" and to end the inflation that has bedeviled the central bank for the past five years, describing it as a "tax" on the American people. Warsh emphasized that his approach would represent a "regime change" in policy.
He pointed to the artificial-intelligence investment boom as a source of economic benefit, arguing that productivity gains tied to AI could help ease price pressures over time. His comments come amid ongoing scrutiny of who will lead the Federal Reserve's policy direction going forward.
Markets have been closely tracking signals about the central bank's future course, with any suggestion of a shift in approach carrying weight for interest-rate expectations. Warsh's remarks add to a broader debate over how aggressively the Fed should act to bring inflation fully under control.
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