Fed Chair Kevin Warsh Said the Central Bank Has "No Tolerance" for Inflation, and the Dow Dropped 840 Points. What It Means for Your Portfolio.
It has already recovered, but the message is clear.
Overview
Federal Reserve Chairman Kevin Warsh just presided over his second meeting in his new job, and he's maintaining current interest rates, no hikes or cuts. The most recent inflation data show lower inflation, and some interest rates, like mortgage rates, have climbed on their own without help from the Fed. Warsh says that's the market doing its job.
However, he reiterated in a session with Congress that he and his committee "have no tolerance for persistently elevated inflation." He upheld his approach of not providing forward guidance, but the implication is that if necessary, the Fed will raise rates.
Federal Reserve Chairman Kevin Warsh. Image source: Federal Reserve.
Details
Source
Originally published at www.fool.com.
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