Fed Chair Kevin Warsh Vows to Deliver Price Stability

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Federal Reserve Chair Kevin Warsh has signaled a firm commitment to bringing inflation down to the central bank's 2% target, stating that the Federal Open Market Committee will deliver price stability. Speaking at a European Central Bank panel in Portugal, Warsh said anyone expecting the Fed to be comfortable with inflation above 2% would be disappointed. The Fed has not achieved its 2% goal in over five years, and Warsh's hawkish stance has raised concerns about potential interest rate hikes if inflation data does not improve. He has also announced five task forces to review Fed policy, including how inflation is assessed, and has suggested using trimmed averages to measure price changes, which could show inflation closer to the target than traditional gauges.

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