Federal Reserve Chair Kevin Warsh will preside over a meeting of the Fed’s rate setting committee Wednesday, according to a report by National Public Radio.
Fed policymakers are weighing what to do about interest rates in the face of stubbornly high inflation and based on Warsh’s recent comments before the Senate Banking Committee, the smart money is on holding rates steady in order to keep inflation under control.
“My colleagues and I recognize that high inflation has been an undue burden on American households and businesses,” Warsh told the banking committee earlier this month. “The members of our (Fed) committee have no tolerance for persistently elevated inflation and we share a resolute commitment to restore price stability.”
The annual U.S. inflation rate fell to 3.5% in June 2026, dropping from 4.2% in May, but lingering uncertainty over energy prices due to the U.S. war with Iran may prevent the Fed from lowering the federal funds rate. The fed funds rate influences rates charged on various financial products such as credit cards, mortgages and other consumer loans.
