Updated July 14, 2026 — Federal Reserve Chair Kevin Warsh has completed the House portion of his first semiannual monetary-policy testimony.

Warsh told lawmakers the central bank would not tolerate persistently high inflation, while cautioning that one encouraging monthly report does not amount to victory. He did not commit to raising, cutting, or holding interest rates at the Fed's July 28–29 meeting, saying policy would follow incoming data and the central bank's legal mandate.

The hearing left the immediate rate path deliberately open. Warsh also said financial markets would receive ample notice before any significant change to the Fed's balance-sheet policy, an issue watched closely because it can affect borrowing conditions beyond the central bank's short-term rate.

The distinction matters: a chair can describe priorities without prejudging a vote that depends on new information and the views of the full policy committee. June's cooler inflation figures strengthen the case for patience, but Warsh emphasized that a single month is not decisive.

Source: Associated Press ↗

Source: Reuters ↗