Kevin Warsh appeared before lawmakers on Capitol Hill for the first time as Fed chairman, where he delivered his semiannual testimony to the House Finance Committee. • Warsh reaffirmed the central bank’s commitment to bringing down inflation and said that the Fed will remain free of political influence.

Federal Reserve Chair Kevin Warsh emphasized the Fed’s commitment to controlling inflation without relying on external factors, as indicated in a recent statement. Warsh’s comments suggest a continued focus on maintaining inflation around the Fed’s 2% target,

The president suggested the recent numbers mean there will be a bigger decline in inflation once the war in Iran is over.

Inflation is a gradual loss of purchasing power that is reflected in a broad rise in prices for goods and services over time. The inflation rate is calculated as the average price increase of a basket of selected goods and services over one year.

Inflation expectations among businesses can affect how they set current prices. Firms’ expectations diverged from those of professional forecasters during the pandemic-era inflation surge and moved closer to household expectations.