Senate Federal Reserve

Federal Reserve Chairman Kevin Warsh testifies before the Senate Banking, Housing and Urban Affairs Committee to deliver the semiannual monetary policy report to Congress, on Capitol Hill, Wednesday, July 15, 2026, in Washington.

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Will tough talk be enough? Fed Chair Warsh faces pressure to combat inflation

Will tough talk be enough? Fed Chair Warsh faces pressure to combat inflation

The Federal Reserve is expected to keep its key interest rate unchanged when it meets Wednesday, but chair Kevin Warsh is under increasing pressure to hike rates soon, a move that could provoke ire from President Donald Trump, who appointed him. The Iran war has reignited, pushing oil and gas prices higher — a trend that will worsen inflation in the coming months. Soaring investment in the artificial intelligence buildout is raising the cost of laptops, smart phones and electricity, and price hikes from tariffs could be in the pipeline. All those trends might lead to only temporary price increases. Yet inflation, according to the Fed’s preferred measure, has topped its 2% target for more than five years.