The Fed's Inflation Conundrum: Can Warsh Deliver? Federal Reserve Chairman Kevin Warsh faces an uphill battle to convince Congress and the markets that he has a handle on inflation.
This week's congressional hearings highlighted the challenges ahead for the central bank chief. Warsh's decision to rethink how the Fed measures inflation is a welcome move, but its impact remains unclear.
The recent declines in consumer and producer price indexes are seen as positive developments, although Warsh acknowledges these measures are imperfect.