Federal Reserve Chair Kevin Warsh said that although this summer's PCE and CPI prints beat expectations, they have not convinced him that underlying inflation trends have materially improved. "Market pricing reflects a belief that we will achieve price stability. I can assure you the market's judgment is correct," he said. Warsh added that with inflation above 2% the Fed's "primary focus should be prices." His more detailed remarks appeared aimed at critics who say his streamlined communication

Federal Reserve Chair Kevin Warsh said that although this summer's PCE and CPI prints beat expectations, they have not convinced him that underlying inflation trends have materially improved. "Market pricing reflects a belief that we will achieve price stability. I can assure you the market's judgment is correct," he said. Warsh added that with inflation above 2% the Fed's "primary focus should be prices." His more detailed remarks appeared aimed at critics who say his streamlined communication has left near-term economic and policy intentions unclear; he reiterated that price stability will not occur automatically and that achieving it is the Fed's responsibility.