{"id":7076,"date":"2026-07-15T23:28:30","date_gmt":"2026-07-15T18:28:30","guid":{"rendered":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=7076"},"modified":"2026-07-15T23:28:30","modified_gmt":"2026-07-15T18:28:30","slug":"fed-chair-warsh-sidesteps-senate-questions-on-inflation-ai-contact-with-trump","status":"publish","type":"post","link":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=7076","title":{"rendered":"Fed chair Warsh sidesteps Senate questions on inflation, AI, contact with Trump"},"content":{"rendered":"<p><script>\r\n  atOptions = {\r\n    'key' : '644b717812d811d6a1c1fc5b6ccd6fa6',\r\n    'format' : 'iframe',\r\n    'height' : 90,\r\n    'width' : 728,\r\n    'params' : {}\r\n  };\r\n<\/script>\r\n<script src=\"https:\/\/www.highperformanceformat.com\/644b717812d811d6a1c1fc5b6ccd6fa6\/invoke.js\"><\/script>\r\n<br \/>\n<\/p>\n<div data-testid=\"prism-article-body\">\n<p class=\"EkqkG IGXmU nlgHS yuUao MvWXB TjIXL aGjvy ebVHC \"><span class=\"oyrPY qlwaB AGxeB  \">WASHINGTON &#8212; <\/span>Federal Reserve Chair Kevin Warsh on Wednesday sought to evade a range of questions from senators on issues such as the <a class=\"zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE \" data-testid=\"prism-linkbase\" href=\"https:\/\/apnews.com\/article\/ai-inflation-federal-reserve-434f02e62a02f9b92e57995d9375df57\">impact of AI on inflation<\/a>, what contacts he has had with President Donald Trump, and how the central bank will determine the persistence of inflation. <\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">Warsh has said since taking office seven weeks ago that he would provide less guidance about the Fed\u2019s next interest rate moves than his predecessors. Yet he has frustrated many Fed-watchers by largely avoiding explanations of how the central bank might respond more generally to potential economic changes.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">\u201cI don\u2019t view a one-time change in prices as necessarily being inflationary, because I think there\u2019s a supply response,\u201d he said in response to a question on the impact of massive investment in AI infrastructure. \u201cWill it increase measured prices over the course of the next 12 months? I suspect it will be. Whether that\u2019s inflationary or not, that\u2019s up to the Federal Reserve, and we\u2019re going to have something to say about that.\u201d<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">In his <a class=\"zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE \" data-testid=\"prism-linkbase\" href=\"https:\/\/apnews.com\/article\/warsh-federal-reserve-inflation-4a1da547d64ae3d54fba29161b213601\">second day of congressional testimony<\/a>, Warsh also downplayed positive inflation data released Tuesday and Wednesday that could make his job as Fed chair easier. As inflation fades, it reduces pressure on the Fed to raise its key interest rate to cool borrowing and spending. <\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">The government <a class=\"zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE \" data-testid=\"prism-linkbase\" href=\"https:\/\/apnews.com\/article\/producer-prices-inflation-wholesale-033764304e871cea56bd0fc501aee294\">said earlier Wednesday<\/a> that wholesale inflation slowed in June, a day after consumer prices <a class=\"zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE \" data-testid=\"prism-linkbase\" href=\"https:\/\/apnews.com\/article\/inflation-trump-food-prices-gas-53d221aa918c466172af494ba7debc00\">were reported to have fallen<\/a> from May to June for the first time in six years. On a yearly basis, inflation cooled to 3.5% last month from 4.2% in May. <\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">\u201cAny central banker would be happy to have data going in the right direction,\u201d he said, but \u201cthese are all imperfect measures of the state of underlying inflation.\u201d <\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">Instead, Warsh said he would look to a task force he has created to study the sources of data the Fed uses. <\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">Separately, Warsh reiterated that he would act independently as Fed chair and resist any political pressure from Trump, who has often demanded lower interest rates. But he did not directly answer whether he has communicated with Trump since his appointment. <\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">\u201cI don\u2019t want to be in the business of sharing discussions that the president and I have,&#8221; Warsh said in response to a question from Sen. Chris Van Hollen, a Democrat from Maryland. <\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">\u201cI will tell you what I\u2019ve said to the president repeatedly and said to the Treasury secretary: they chose an independent guy to do the job and that\u2019s exactly what I plan on doing,\u201d he added. <\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC eTIW sUzSN \">Trump repeatedly attacked Warsh&#8217;s predecessor, Jerome Powell, for not cutting interest rates deeply enough, and his administration even pushed an investigation into brief Senate testimony by Powell on a building renovation by the Fed, raising widespread concerns about the Fed&#8217;s independence. <\/p>\n<\/div>\n<script async=\"async\" data-cfasync=\"false\" src=\"https:\/\/pl30214220.effectivecpmnetwork.com\/9ab3d4df8a7e1a6171e16ddbf732cc19\/invoke.js\"><\/script>\r\n<div id=\"container-9ab3d4df8a7e1a6171e16ddbf732cc19\"><\/div>\r\n\n","protected":false},"excerpt":{"rendered":"<p>WASHINGTON &#8212; Federal Reserve Chair Kevin Warsh on Wednesday sought to evade a range of questions from senators on issues such as the impact of AI on inflation, what contacts he has had with President Donald Trump, and how the central bank will determine the persistence of inflation. Warsh has said since taking office seven&#8230;<\/p>\n","protected":false},"author":1,"featured_media":7077,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/i.abcnewsfe.com\/a\/500e57d0-d8b5-44dc-84ee-acf7a8e379ae\/wirestory_09923713ddb06f25d17c975717e4fb15_16x9.jpg?w=1600","fifu_image_alt":"","footnotes":""},"categories":[4],"tags":[],"class_list":["post-7076","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-hub"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/7076","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7076"}],"version-history":[{"count":0,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/7076\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/media\/7077"}],"wp:attachment":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7076"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7076"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}