Warsh says Fed has ‘no tolerance’ for high inflation but provides no hints on next move

WASHINGTON (AP) — Federal Reserve Chair Kevin Warsh pledged to make high inflation “a thing of the past” in his first congressional testimony Tuesday (July 14, 2026), yet provided no signal about the central bank’s next steps. Yet about half of the 19 members of the Fed’s interest rate-setting committee expect they will have to raise the central bank’s key rate by the end of the year to defeat inflation, while nearly half have penciled in no change or even a rate cut. Warsh faces a stiff challenge in reconciling the divided committee while navigating a rapidly-changing economic outlook.