Fed: Warsh calls for a change of policy to eliminate the ‘tax’ of inflation
The Fed Chair emphasises the need to review monetary policy practices to protect citizens and businesses from the burden of inflation, promising a new monetary policy strategy
(Il Sole 24 Ore Radiocor) - Describing inflation as an “unfair burden”, the Chair of the Federal Reserve, Kevin Warsh, reiterated his call for a “regime change” at the central bank. “It is a tax on American citizens and businesses. We intend to get rid of this tax,” he said. “This means we need a change of regime in monetary policy and a reassessment of practices, some of which have worked, others have not.”
During his congressional hearing, Warsh reinforced his recent critical stance on inflation, whilst emphasising the strength of the US economy and the benefits of business investment, particularly in the field of artificial intelligence. Warsh also pledged to “get monetary policy right” and tackle inflation, which has plagued the central bank over the past five years. “We are at a turning point in history today. It is up to all of us to rise to this challenge,” said Warsh, speaking today before the House Financial Services Committee and due to appear before the Senate Banking Committee tomorrow.
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