July 29 (Reuters) – Federal Reserve Chairman Kevin Warsh said on Wednesday that the U.S. central bank has no higher “soft target” for inflation and is determined to meet its longstanding 2% goal despite leaving rates unchanged amid elevated inflation readings.
“For some households, businesses, and market professionals, five years of high inflation have left a mistaken impression -that’s hard to shake – that the Fed’s implicit inflation target was somehow above 2%,” Warsh told a news conference. “Let me reiterate: there is no soft inflation target. There is no soft implicit target, not on this committee’s watch. There’s only a target, and it’s 2%.”
(Reporting by David Lawder and Dan Burns; Editing by Chizu Nomiyama)
