Kevin Warsh, chair of the U.S. Federal Reserve (Fed), expressed a determination not to tolerate high inflation.
Warsh said in prepared remarks released before appearing at the House Financial Services Committee hearing on the 14th (local time), "The Fed's top priority is to operate monetary policy correctly, or, failing that, to run it as close to correct as possible."
He added, "If we operate policy correctly, we will do so, and the surge in inflation over the past five years will be a thing of the past."
Referring to the Federal Open Market Committee (FOMC) meeting last month, the first he chaired after taking office, Warsh said, "My fellow Commissioners and I recognize that high inflation has placed an excessive burden on U.S. household and corporations."
He also explained, "Our Commissioners share a firm resolve not to tolerate persistently high inflation and to restore price stability."
Based on that assessment, Warsh said the FOMC last month kept the target range for the federal funds rate unchanged at 3.50% to 3.75% annually.
Meanwhile, the U.S. consumer price index (CPI) for June, released that day, rose 3.5% from a year earlier, below the market expectation of 3.8%. The core CPI, which excludes the volatile food and energy categories, climbed 2.6% from the same month last year.