Federal Reserve Chairman Kevin Warsh pledged Tuesday to "get monetary policy right" and defeat the inflation that has bedeviled the central bank for the past five years. In remarks for delivery to separate congressional panels this week, Warsh reiterated his recent tough talk on inflation , while also touting the strength of the U.S. economy and benefits coming from business investment, particularly involving artificial intelligence. "Today we are at a hinge point in history. It's up to all of us to meet this moment," said Warsh, who speaks Tuesday to the House Financial Services Committee then the Senate Banking Committee on Wednesday. "The Fed's number one objective is to get monetary policy right or as near to it as we possibly can. That is our clear and constant aim, the star we steer by," he added. "And if we get policy right and we will the inflation surge of the last five years will be a thing of the past." The remarks come just two months into Warsh's term. Fed chairs are mandated to appear twice a year before Congress to deliver a monetary policy report then take legislators' questions. Warsh takes over a Fed that has scene inflation exceed its 2% mandat e since 2021. During his confirmation hearing earlier this year, the chairman called inflation "a choice," and emphasized repeatedly the importance of bringing down the cost of living during his first news conference. Warsh further criticized past practices of the Fed, specifically a policy adopted in 2020 that allowed for above-target inflation after periods of lower prices. The policy specifically sought to address imbalances in employment. "That central bank wasn't the first central bank to ask for a little more inflation and end up with a lot more. It was a mistake," he said. "The framework did not succeed in its objectives, and I am pleased that before my arrival, that my predecessors took that and cast it aside." Calling inflation an "unfair burden," Warsh reiterated his call for "regime change" that he first made in an interview with CNBC last year. "It has been a tax on the American people and businesses. We plan on getting rid of that tax," he said. "That means we need a regime change in policy, and we need new consideration of practices, some of which have been working, some of which haven't." Similar to his predecessor, Jerome Powell , Warsh noted that the persistently high inflation levels have "been an undue burden on American households and businesses" who have faced higher costs across the board, with the latest surge coming in good part from soaring energy prices. "While monthly price fluctuations are inevitable especially in an unsettled world underlying inflation over longer time horizons is determined largely by monetary policy," he said. "The members of our Committee have no tolerance for persistently elevated inflation. And we share a resolute commitment to restoring price stability." On broader conditions, Warsh said the economy "is expanding at a solid pace, showing resilience in...
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