New Fed chair Warsh promises Congress a "regime change" against inflation
In his first hearing as chair of the U.S. Federal Reserve, Kevin Warsh held out the prospect of an end to high inflation and promised a "regime change." He gave no specifics on whether he would raise interest rates to achieve it; he pledged independence from Trump.
Both sources describe the same appearance but weigh it in opposite ways. The conservative FAZ foregrounds Warsh's promise of a "regime change" and the prospect of lower inflation rates and highlights his assurance that he will not let himself be pressured by Donald Trump, a signal of strength and independence. The left-liberal New York Times stresses the opposite: Warsh did repeat the Fed's commitment to lowering inflation but left open how, and in particular whether he supports higher interest rates. The taking of office and the rhetorical commitment to price stability and independence are facts; what is contested is whether a clear course lies behind the "regime change" or, for now, only a promise, made all the more delicate because the war with Iran is at the same time reigniting energy prices and thus inflation.