Warsh Says Fed Has 'No Tolerance' for Persistent Inflation

Fed Chair Kevin Warsh told the House Financial Services Committee that policymakers have “no tolerance” for high inflation, signaling a more hawkish stance. While no new data or policy action was specified, the message implies tighter policy conditions and higher for longer risk, which is likely to weigh on rate-sensitive assets and bond yields.

Analysis

Fed Chair Kevin Warsh told the House Financial Services Committee that policymakers have “no tolerance” for high inflation, signaling a more hawkish stance. While no new data or policy action was specified, the message implies tighter policy conditions and higher for longer risk, which is likely to weigh on rate-sensitive assets and bond yields.