Fed's Warsh Says There Is No Soft Inflation Target

• The Fed committee voted 9-3 to maintain the federal funds rate at 3.5% to 3.75%.
• The economy shows 'impressive resilience' with 'solid growth' and stable unemployment, despite recent shocks.
• Inflation remains 'elevated' relative to the 2% target, and the Fed is 'resolute' in achieving price stability.
• Chairman Warsh explicitly stated, 'There is no soft inflation target... There's only a target, and it's 2%.'
• He stressed that five years of above-target inflation cannot be cured quickly, reinforcing the Fed's long-term commitment.

Federal Reserve Chairman Kevin Warsh reiterated the Fed's unwavering commitment to its 2% inflation target, stating there is 'no soft implicit target' and that the Fed 'will not waver' in delivering price stability. While acknowledging the economy's 'impressive resilience' and 'solid growth', he emphasized that the fight against elevated inflation is ongoing and cannot be quickly resolved.