Archive · 30 Jul 2026
Fed Official Warsh Clarifies 2% Inflation Target
John Warsh, a Fed official, talked about how the Federal Reserve wants the price of things to rise only a little each year, about 2%.
He said there isn’t a hidden or softer goal.
Some people think the Fed wants a higher goal because prices have been high for a long time.
Warsh wants to clear that up.
He said the Fed’s plans aren’t stuck or slow.
He wants everyone to know the real target is 2%.
John Warsh says the Fed’s only inflation target is 2%, with no soft or implicit target.
He argues that markets are skeptical of his explanation for bringing down inflation.
Warsh notes that five years of high inflation has misled some households, businesses, and professionals.
He emphasizes that the FOMC’s policy and strategy discussions are not inertial.
Warsh reiterates that the Fed’s only inflation target is 2%.
- Who
- John Warsh, a Federal Reserve official and member of the FOMC
- What
- Asserted that the Fed has only a 2% inflation target and no soft target
- When
- During the FOMC’s policy and strategy discussions over the past two days
- Where
- Federal Open Market Committee meeting
- Why
- To address market skepticism and clarify the Fed’s stance on inflation
- Speaker
- John Warsh
- Position
- Federal Reserve official, FOMC member
- Inflation Target
- 2%
- Statement
- No soft or implicit inflation target
- Context
- FOMC policy discussions