Fed Chair Warsh Says Inflation Not Meeting Standard of Slowing

03:06 PM EDT, 09/16/2026 (MT Newswires) -- Inflation remains elevated while the labor markets is strong, leading the Federal Open Market Committee to act to slow inflation, Federal Reserve Chair Kevin Warsh said Wednesday at a press conference after the meeting. "Last month in Wyoming, I expressed my commitment to a monetary policy discipline, not to a decision," Warsh said. "I defined the standard for action. We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Today the FOMC decide that this standard has not been satisfied." At its meeting, the FOMC voted 12-0 to raise the target range for its federal funds to 3.75% to 4.00% saying that inflation remains elevated and raising the target range will "support a timelier return to the Committee's 2% goal." Warsh said that there was "an attitude of optimism" among FOMC members at the meeting, with particular strength in labor markets, placing the focus on the inflation side of the Fed's mandate. "As I said at the policy Symposium in Jackson Hole, I would be hard-pressed to describe broad financial conditions as restrictive," Warsh said. "This view was widely shared by the Committee. So, we removed a dose of accommodation." The updated Summary of Economic Projections suggested a further rate increase is possible for 2026, followed by no adjustment in 2027 before the rate is reduced in 2028. However, nearly half of the participants said one more increase may be needed in 2027, so the median forecast could shift at the next update. As he did in June, Warsh said that he did not submit forecasts for SEP, repeating his preference for not providing forward guidance or focusing on a small set of data points. "I will just reiterate, trends matter," Warsh said. "Data-points are noisy. Data-point dependence is a dangerous preoccupation. It is not something that concerns me."