Federal Reserve Chair Warsh emphasizes political independence, signals focus on inflation

Federal Reserve Chair Kevin Warsh emphasized the central bank's political independence and commitment to reducing inflation, countering President Donald Trump's calls for lower interest rates. Warsh hinted at potential rate hikes in September but declined to specify tactics, citing opposition to forward guidance. Inflation, recently peaking at 4.2% due to the Iran war's impact on gas prices, may have stabilized as peace agreements lower energy costs.