Federal Reserve Chair Kevin Warsh testified before the House Financial Services Committee on Tuesday, July 14, 2026, to deliver the Fed’s semi-annual monetary-policy report [1].

The testimony comes as the U.S. economy continues to grapple with price volatility. Warsh's appearance highlights the central bank's struggle to stabilize the cost of living amid shifting energy prices and long-term inflationary pressures.

Warsh focused on the persistence of rising prices during the hearing in Washington, D.C. [2]. He said that inflation has been running above the Fed's 2% target for more than five years [3]. This trend has complicated the central bank's efforts to maintain price stability while supporting economic growth.

Recent data underscores the challenge. The Consumer Price Index annual rate stood at 3.5 percent in June 2026 [4]. Warsh used the committee session to emphasize that the Federal Reserve is prepared to take the necessary steps to bring that figure down to the target level.

"The Fed is committed to ending the recent surge in inflation," Warsh said [5].

Beyond the general inflation rate, the Chair discussed specific risks to the economy, including the volatility of energy prices. These factors often create unpredictable swings in the Consumer Price Index, making it difficult for the Fed to calibrate interest rate adjustments with precision.

Warsh said that the central bank would remain aggressive in its pursuit of the 2% target to prevent long-term economic damage. He signaled that the Fed would not pivot to a more lenient policy until the data showed a sustainable decline in prices.

"We will not accept persistently elevated inflation," Warsh said [6].

“The Fed is committed to ending the recent surge in inflation.”

The Fed's admission that inflation has exceeded its target for over five years suggests a systemic failure to anchor price expectations. By emphasizing a refusal to accept 'persistently elevated' inflation, Warsh is signaling to markets that the Federal Reserve may keep interest rates higher for longer, prioritizing the 2% target over short-term economic growth to avoid a permanent shift in the cost of living.