Fed Chair Kevin Warsh Notes Five-Month Policy Progress While Conceding Price Stability Has Not Yet Been...

Speaking during his October 28 post-FOMC press conference following the Committee's 10-2 vote to hold the benchmark federal funds rate at 3.75%–4.00%, Federal Reserve Chairman Kevin Warsh stated that the central bank has made encouraging progress over his first five months in office, while candidly acknowledging that price stability has not yet been restored.
Key takeaways from Warsh’s assessment of his five-month tenure and the ongoing inflation fight include:
- Five-Month Progress on Policy Calibration: Reflecting on the period since he succeeded Jerome Powell as Fed Chair in May 2026—a stretch that included September’s 25-basis-point rate hike—Warsh noted that inflation compensation signposts and financial transmission channels are moving in the right direction as "monetary medicine is starting to work some."
- Candid Concession on Price Stability: Despite positive traction, Warsh openly acknowledged that with headline CPI running at 3.7% year-over-year (and nearly six years of inflation exceeding the Fed's 2% target), the Committee "[hasn't] achieved price stability... but we're working on it."
- Unwavering Commitment Ahead of December FOMC: Reiterating that restoring 2% inflation is essential to sustaining the strong U.S. labor market and double-digit business investment momentum, Warsh kept the door wide open for additional tightening at the December 8–9 FOMC meeting, where markets currently price in roughly 75% odds of a 25-basis-point rate hike.