Highlights
testifies before the House Financial Services Committee hearing,"The Federal Reserve' Semi-Annual Monetary Policy Report"
Description
Warsh's prepared testimony breaks no new ground on policy front. He repeats the FOMC has no tolerance for above target inflation and pledges to get policy right and make the excessive inflation of the last five years a thing of the past. Warsh touts his task forces as helping reform the Fed's processes to help get policy right. He depicts the economy as solid, including the job market, which he calls stable.
Warsh offers no nugget on the Fed's reaction function or the policy outlook. That is consistent with the approach he took at his first press conference. He appears committed to the idea that the Fed should talk a lot less and let markets and the public draw their own conclusions about the rate outlook from events like the consumer price report today that made inflation look somewhat less worrisome than expected.