Fed Chair Kevin Warsh rejected the view that the Fed’s decision today not to
raise rates signals weakened resolve on inflation. He said the Fed will not
adopt a looser inflation target and warned that inflation’s full impact on
consumers can take up to six years to emerge. Warsh noted consumers are already
feeling pressure from higher fuel costs and that near-term inflation
expectations are rising, but said households and firms remain confident in the
Fed’s ability to maintain price stability.