The Federal Reserve pledged to deliver price stability in its semi-annual Monetary Policy Report to Congress released Friday. The report notes that inflation remains elevated due to higher energy prices from the Middle East conflict and tariffs pushing up consumer goods and semiconductor demand. One numerical policy rule suggests a higher fed funds rate than the current 3.5% to 3.75% range, though the Fed cautions such prescriptions should be interpreted carefully. Fed Chairman Kevin Warsh is set to testify before Congress next week, where he is expected to face questions on the economy, inflation, and interest rates but has declined to offer forward guidance ahead of the upcoming policy meeting.