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Fed Chair Warsh Outlines New Strategy To Tackle Inflation

He acknowledged that elevated prices over the past five years have burdened American households and businesses

Federal Reserve Chairman Kevin Warsh

Federal Reserve Chairman Kevin Warsh pledged to restore price stability, telling lawmakers that inflation could become "a thing of the past" if the central bank maintains the right monetary policy.

Speaking ahead of appearances before House and Senate committees, Warsh said controlling inflation remains the Federal Reserve's top priority.

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According to the report, he acknowledged that elevated prices over the past five years have burdened American households and businesses, stressing that policymakers have "no tolerance" for persistently high inflation.

Warsh also described the U.S. economy as resilient despite recent challenges. He pointed to the rapid expansion of artificial intelligence-related investment, including data centers, equipment and software, as a key driver of economic growth.

The report said he believes AI investment could eventually become a normal part of business spending and improve productivity.

Warsh also outlined five internal task forces that will review the Federal Reserve's communications, technology, balance sheet, economic data and inflation framework as part of broader institutional reforms.

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