Fed chief signals tougher fight against persistent inflation

Federal Reserve Chair Kevin Warsh said inflation is not slowing meaningfully and pledged to push it toward the central bank’s 2% target. He said strong business profits and a labor market near full employment allow the Fed to focus on price stability.

Investors sharply increased the odds of an interest-rate hike next month, from about 35% to more than 55%, after Warsh’s remarks. Rates on short-term debt rose as markets weighed the prospect of further increases this year.

Warsh also said rapid investment in artificial-intelligence infrastructure could lift economic growth and productivity, potentially lowering inflation over time. He has created a task force to study the technology’s effects on the economy and monetary policy.

Read the full story at thefiscaltimes.com.