Fed Chair Warsh Reaffirms Commitment to Price Stability as U.S. Economy Remains Resilient

Federal Reserve Chair Kevin Warsh reaffirmed the central bank’s commitment to restoring price stability, saying policymakers remain focused on bringing inflation under control while describing the U.S. economy as resilient despite recent economic and geopolitical developments.

In prepared remarks released ahead of his Semiannual Monetary Policy Report to Congress, Warsh said the Federal Reserve has “no tolerance for persistently elevated inflation” and remains committed to achieving its price stability mandate.

“If we get policy right—and we will—the inflation surge of the last five years will be a thing of the past,” Warsh said.

The Fed Chair said the U.S. economy continues to expand at a solid pace, supported by moderate household consumption and steady growth in manufacturing output throughout the year.

Warsh identified business investment as one of the economy’s strongest areas, pointing to continued spending on data center construction and sustained demand for artificial intelligence-related equipment and software.

The comments underscore the growing role of AI infrastructure investment as a contributor to U.S. economic activity, with companies continuing to expand computing capacity to support generative AI and other advanced technologies.

On the labor market, Warsh said employment conditions remain stable. He noted that job creation has kept pace with labor force growth, the unemployment rate remains low and nominal wages continue to post solid gains.

The remarks come as investors closely monitor the Federal Reserve’s assessment of inflation and economic conditions for signals about the future path of U.S. monetary policy. While emphasizing continued progress in economic activity, Warsh reiterated that restoring price stability remains the central bank’s primary objective.