Warsh Says Persistent Inflation Keeps Fed Focused on Prices

The Federal Reserve raised interest rates by a small amount.

Chair Kevin Warsh said prices have been rising too quickly for too long.

He wants to see stronger evidence that inflation is moving toward the Fed’s target.

Recent inflation reports did not give him enough confidence.

Warsh said the Fed will study new economic information before making its next decision.

He did not promise that rates would rise or fall next.

The Fed cannot directly control prices for oil or food.

It can try to stop temporary price increases from spreading through the wider economy.