Kevin Warsh Calls For 'Regime Change' In Inflation Framework, Says Fed Missed Its Mark As Prices Soared 25% To 35% Post COVID-19

Federal Reserve Chair nominee Kevin Warsh on Tuesday called for a “regime change” in the central bank’s inflation framework, stating that the Fed missed its mark when prices soared by 25% to 35% for Americans across the board post the COVID-19 pandemic.

“We’re still dealing with the legacy of the policy errors in 2021 and 2022. Once you let inflation take hold in the economy, it’s more expensive and harder to bring it down,” he said at the Senate Banking Committee’s confirmation hearing.

Warsh added that the Fed needs fundamental policy reforms to address the issue, noting that although inflation has eased from recent highs, ordinary Americans are still reeling from higher prices.

“I think that means a regime change in the conduct of policy, I think that means a different new inflation framework… I look forward to working with my colleagues at the Fed, if confirmed, to achieve that,” Warsh said.

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