Federal Reserve Chair Kevin Warsh indicated the central bank is strongly leaning toward raising interest rates, stating at the ECB Forum on Central Banking that the Fed will deliver price stability and would not be comfortable with inflation above 2%. Warsh, sworn in on May 22 as President Trump's handpicked successor to Jerome Powell, has vowed to reform the Fed, including eliminating forward-looking guidance. His remarks come as Trump-driven inflation pushed the rate to a three-year high of 4.2% in May, with Core Personal Consumption Expenditures expected to rise further. Warsh, a historic monetary hawk, made clear that anyone expecting the Fed to tolerate above-target inflation would be disappointed.