Kevin Warsh became Federal Reserve chair after succeeding Jerome Powell, following his swearing-in on May 22. President Trump selected Warsh because Powell was seen as too slow to cut rates and as restraining economic growth. Investors have been waiting for rate cuts after inflation cools, but Warsh’s April Senate Banking Committee testimony included an 18-word statement defining price stability as a condition where no one is discussing it. Inflation rose to 3.8% from 3.3% in March, challenging expectations that policy would quickly return to a 2% target before easing aggressively. Warsh’s framing implies price stability may depend on perception and confidence rather than a specific percentage.
"“I believe that price stability should be a change in prices such that no one's talking about it.”"
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