Kevin Warsh says Fed has ‘no tolerance' for inflation in first testimony as chairman on Capitol Hill

Fed commentary underscored a focus on ongoing price pressures, which Warsh said is consistent with a bias toward higher rates rather than cuts. The message suggests rates may stay higher for longer, a headwind for rate-sensitive assets despite no specific policy action announced.

Analysis

Fed commentary underscored a focus on ongoing price pressures, which Warsh said is consistent with a bias toward higher rates rather than cuts. The message suggests rates may stay higher for longer, a headwind for rate-sensitive assets despite no specific policy action announced.