Warsh told Congress the Fed has no tolerance for persistently elevated inflation

Federal Reserve Chairman Kevin Warsh's first congressional testimony as chairman was reported by Mary Cunningham at CBS News. Warsh told the House Financial Services Committee on July 14 that members of the Federal Open Market Committee have "no tolerance for persistently elevated inflation." He gave no rate guidance. The committee held the federal funds target range at 3.5 to 3.75 percent at its June meeting. Inflation ran at 3.5 percent over the 12 months to June, against the Fed's 2 percent goal. Asked about that reading, Warsh said he does not regard the job as done. CME Group's FedWatch tool put the odds of no change at the next meeting at 86 percent. Warsh submitted identical remarks to the Senate Banking Committee on July 15.