Financial Times reports Kevin Warsh acknowledged communication missteps in his first 10 weeks as Fed chair but defended his reform agenda. Insiders say Warsh is prepared to raise rates at the September meeting if upcoming inflation prints are strong and markets lift expectations for borrowing costs. They added the Fed could also reduce its $6.7 tln balance sheet to tighten policy, but interest rates remain the primary tool.

2026-08-06

Financial Times reports Kevin Warsh acknowledged communication missteps in his first 10 weeks as Fed chair but defended his reform agenda. Insiders say Warsh is prepared to raise rates at the September meeting if upcoming inflation prints are strong and markets lift expectations for borrowing costs. They added the Fed could also reduce its $6.7 tln balance sheet to tighten policy, but interest rates remain the primary tool.