AP News70%
Will tough talk be enough? Fed Chair Warsh faces pressure to combat inflation 66%
By CHRISTOPHER RUGABER72%
7/28/2026, 7:28:46 AM
Keywords: Kevin Warsh, Inflation, Donald Trump, Economic Policy, Federal Reserve System, Iran War, Oil And Gas Industry, Energy Markets, Laptops, Economic Indicators, Federal Reserve Inflation Warsh Trump Rate Hike, Vincent Reinhart, Jerome Powell, Iran, Iran Government, James Bullard, Beth Hammack, Business, Joseph Lavorgna, Stephen Douglass, Christopher Waller
BS Summary: This article contains 16 faulty reasoning types, including Pessimism Bias, Availability Heuristic, and Framing Effect, with Negativity Bias as the most egregious example at 19.9% saturation with 75 hits. Analysis detected 579 faulty-reasoning hits from 376 analyzed words, generating a BS Score of 53.9% and a BS Rank of 66% (8,824 of 25,563 articles). This article is worse (more manipulative) than 65.50% of the article peer group.
WASHINGTON (AP) — The Federal Reserve is expected to keep its key interest rate unchanged when it meets Tuesday and Wednesday, but chair Kevin Warsh is under increasing pressure to hike rates soon, a move that could provoke ire from President Donald Trump, who appointed him.
The Iran war has reignited, pushing oil and gas prices higher — a trend that will worsen inflation in the coming months.
Soaring investment in the artificial intelligence buildout is raising the cost of laptops, smart phones and electricity.
And price hikes from tariffs could be in the pipeline after Trump imposed new duties on dozens of U.S. trading partners.
All those trends might lead to only temporary price increases, rather than a sustained burst of inflation similar to the spike in 2021-2022.
Yet inflation, according to the Fed’s preferred measure, has topped its 2% target for more than five years, making it harder for the Fed to ignore price spikes, no matter how brief.
Core inflation, which excludes the volatile energy and food categories, has risen since last December and has been stuck at around 3% or higher since 2023.
Without noticeable progress soon, some Fed officials have said rate hikes will be needed.
“Unfortunately, inflation does not appear to be headed sustainably back all the way to 2%,” Lorie Logan, president of the Federal Reserve Bank of Dallas, said recently.
“Modestly higher interest rates would better balance the outlook.”
Logan is a voting member of the Fed’s rate-setting committee.
But Warsh’s tough talk raises expectations that he will follow through with action, current and former Fed officials say.
“They are hoping and intending to talk the talk without having to walk the walk,” said Stephen Douglass, chief economist at NISA Investment Advisors and former analyst at the New York Fed.
He doesn’t expect the Fed will raise rates this year.
Other economists say inflation won’t be defeated without action by the Fed.
“There has never been a time when inflation gradually moderated without impetus from the Fed,” Joseph Lavorgna, a former top economist at the Treasury Department and chief economist at SMBC Americas, said.
“In other words, core inflation is not going to magically slow.”
Analysis
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