Analysis: Fed Chairman Warsh faces an inflation credibility test after Congress hearings

New Fed chairman’s two days of testimony avoided major stumbles, but the article flags a rapid test of his commitment to price stability. The focus on controlling inflation implies continued scrutiny of the Fed’s reaction function and potential implications for interest-rate expectations.

Analysis

New Fed chairman’s two days of testimony avoided major stumbles, but the article flags a rapid test of his commitment to price stability. The focus on controlling inflation implies continued scrutiny of the Fed’s reaction function and potential implications for interest-rate expectations.