Warsh states the Fed must be confident inflation is moving to target at sufficient speed or they have work to do.
“We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do. That's our job ... our mandate ... and our charge to keep.”
Warsh says the Fed can be held accountable for its mandate as the only true test of credibility.
“We can be held accountable for delivering on our remit — the only true test of our credibility,”
Warsh argues hardworking Americans, not financial market participants, bear the worst costs of Fed policy errors.
“If the Fed gets inflation wrong and judges the economy wrong, who gets the worst of it? Not the financial high flyers.”