Weekly Commentary: Warsh's Regime Change

2026-06-20 04:25:38 ET

He was impressive. Listening intently to Kevin Warsh's post-meeting press conference was a reminder of why I admired Fed Governor Warsh (2006 to 2011) and was disappointed to see him leave the institution. The new Chair conveyed complete control over the subject matter, as well as admirable commitment and determination to uphold the great responsibility of leading our central bank in an uncertain and unstable era. It was only 45 minutes, but his opening Chair performance outshone all predecessors back to Paul Volcker.

Warsh: "We recognize that inflation has been running well ahead of the Fed's long-stated inflation goal of 2%. That's been going on for more than 5 years. Persistently high prices are a burden for the American people. But the recent past need not be prologue. I am pleased to report that members of the FOMC are unambiguous and unanimous: This Committee will deliver price stability."

"…We have the capability and commitment to deliver on our price stability objective of 2%. That's exactly what we're going to do. In the Fed's review of its strategy over the last any number of years, in January, the Fed -- including the strategy that we're still bound by - the Fed statement says that inflation is primarily determined by monetary policy. You bet it is. I've said for years inflation is a choice. You bet it is. And today I'm announcing that this committee unambiguously and unanimously have decided we are going to deliver on that."...

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