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Warsh: Inflation trend fails to pass test; Fed decides to "remove some easing"

2026-09-16 18:50:18
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According to BlockBeats, on September 17, Federal Reserve Chairman Warsh stated that data from the past seven weeks indicates that the U.S. economy has strengthened, but the inflation trend has failed to pass the test. The FOMC believes that there are still very few factors that could change the inflation trend.


Warsh stated that today's policy decision was firm and unanimous, with the Federal Reserve deciding to remove some of its previous accommodative policies. He noted that his FOMC colleagues found it difficult to describe current financial conditions as restrictive, and that the neutral interest rate would not have a practical impact on specific policy decisions.


Regarding the Federal Reserve's independence, Warsh stated that "independence is a two-way street," and the Fed must adhere to its responsibilities. He also emphasized that he would not rely on a single data point to make judgments, but would focus more on the overall trend of economic data, because individual data points may contain noise.

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