What will the new Fed chairman do? "Fed governor Christopher Waller said Monday that while inflation could still drift back toward 2% without further tightening, 'there is still a credible' chance that upcoming data shows inflation remains elevated or accelerates again," reports Axios. New Federal Reserve Chairman Kevin Warsh testified before Congress yesterday, saying "the members of our committee have no tolerance for persistently elevated inflation." He reassured lawmakers that they "share a resolute commitment to restoring price stability" but did not outline how.
Another Consumer Price Index (CPI) report was released yesterday, ahead of the Fed meeting later this month. "The data showed that inflation in June cooled sharply as falling energy prices stemming from a temporary truce in the war with Iran dragged down the overall index," reports The New York Times. "'Core' inflation, which strips out volatile food and energy items to give a better sense of the underlying trend, also eased by more than expected."
