The new Consumer Price Index released July 14, 2026 showed a decline in gasoline prices, compared to $4.99 per gallon at this gas station in Silver Spring, Maryland, on May 17, 2026. (Photo by Jane Norman/States Newsroom)
WASHINGTON – Federal Reserve Chairman Kevin Warsh pledged Tuesday to “put these years of high inflation behind us” and lower prices, including mortgage rates, for ordinary Americans as inflation remains at its highest level in two years.
Warsh appeared before lawmakers on Capitol Hill shortly after the government’s latest monthly inflation data showed a slight decline attributed to falling gas prices as the war in Iran cooled.
But routine costs like food and fuel remain 3.5% higher than a year ago, according to the Bureau of Labor Statistics, a level last seen in May 2024. Consumer Price Index for June. The report comes as the United States and Iran last week renewed rocket fire in the Strait of Hormuz, a chokepoint for a significant portion of the world’s oil.
The criticism from members of the House Financial Services Committee marked Warsh’s first appearance before Congress since his confirmation as central bank chairman.
The country’s top banker has faced questions not only about inflation but also after the U.S. Supreme Court’s decision to isolate President Donald Trump’s Fed enhance the president’s authority over agencies.
Warsh told lawmakers he would ignore political pressure and “follow the data” when making monetary policy decisions.
Warsh’s appointment came after Trump’s long and public pressure campaign on former Fed Chair Jerome Powell to cut interest rates and on him Burn by Fed Director Lisa Cook. Trump had also targeted Powell with a federal investigation into renovation costs, but eventually dropped the probe.
“A potential second burst of inflation”
Financial Services Committee Chairman French Hill, an Arkansas Republican, warned during questioning: “A possible second spike in inflation is looming due to factors outside the Fed. What the Fed can control is how it responds.”
Hill said he was “encouraged” that Warsh had committed to reducing inflation to the Fed’s 2% target.
“Inflation affects Americans here and now, not in a hypothetical future made up of long-term forecasts. … How do you and your colleagues on the Open Market Committee plan to achieve that?”
Warsh said the Fed would review interest rates and the central bank’s assets and liabilities to curb inflation.
“We have the tools to achieve this. So it’s a function of commitment, responsibility and tools and we are three for three and we will deliver,” he said.
Addressing the issue of the high cost of living, Rep. William Timmons, R-S.C., said, “The people I represent should not have to endure another sustained period of elevated inflation.”
Warsh said he agreed with Timmons’ “diagnosis” that American households and businesses have suffered “undue hardship.”
“What I would also say is that I’m not interested in prejudging what the (Federal Open Market) committee, which I get to chair, decides,” Warsh said. “I think we need to continue to have a good family argument on this issue. This will start up again in a few weeks, and when we have news for you about the exact methods to solve this problem, we will be very clear about what the methods are, and so will the American people.”
Communication with the public
Several questions from Democrats on the committee focused on how Warsh plans to communicate with the public after he said he would limit press conferences and announcements.
Rep. Nydia Velázquez, D-N.Y., asked Warsh if he can “commit today to creating a fixed public standard for which (Federal Open Market Committee) decisions and procedural changes trigger a press conference, rather than deciding on a case-by-case basis which might be worthwhile?”
Warsh said it was “immediately important to think about reforms, including communications.”
“I don’t expect the changing communications to be about hiding the ball,” he said.
Rep. Andy Barr, a Republican from Kentucky, cited a Wall Street Journal article criticizing the “constant whining, lengthy policy statements and press conferences” to announce future policy moves.
“Chairman Warsh, why is it important to abolish the dot plot and end forward guidance once and for all?” Barr asked, referring to a chart that shows data as dots.
Warsh said his Fed would not share “every passing thought.”
“I think, at least for me, being a little more careful in our communication is a better way to call balls and strikes,” he said.
Will he “follow the president’s wishes”?
Warsh also faced numerous questions from Democrats about his commitment to protecting the Fed from Trump’s meddling attempts.
Rep. Gregory Meeks, a New York Democrat, said: “If the president publicly pressures you to pursue a different course than what you think the economic data supports, will you follow the president’s wishes or follow the data?”
“My commitment to you is to follow the law and the data and to use our best judgment,” Warsh responded.
Meeks fired back: “Even if he criticizes you publicly for it? … He criticizes you publicly and tells you how disappointed he is in you and all that? Are you still going to do what the data tells you? … Are you willing to do that?”
“I am ready to follow the law and I am ready for the Fed to fulfill the broad mandate you have given us,” Warsh responded.
