(Sharecast News) - The Federal Reserve's new chair has insisted to US lawmakers that the surge in inflation seen over the last five years will become "a thing of the past".
In pre-prepared remarks, Kevin Warsh - who was named as Jerome Powell's successor in May - told the House of Representative's Financial Services Committee on Tuesday that the central bank's "number one objective" was to get monetary policy right, "or as near to it as we possibly can".

He continued: "That is our clear and constant aim, the star we steer by. And if we get that policy right - and we will - then inflation surge of the last five years will be a thing of the past."

His appearance coincided with the latest inflation data from the Bureau of Labour Statistics. The consumer price index slowed notably in June, to 3.5% from 4.2% in May, as gasoline prices fell sharply. It was the first decline for five months. However, the print remains above target, and has now exceeded 2% since 2021.

Warsh said of his first Federal Open Market Committee last month: "The members of our committee have no tolerance for persistently elevated inflation. And we share a resolute commitment to restoring price stability. This was the focus on our June meeting, at which we decided to hold the target range for federal funds at 3.5% to 3.75%."

Warsh added that since taking up the role, he had appointed five task forces to assess the Fed's core operations, from communication to data sources.

He concluded: "We are starting a new chapter at the Federal Reserve at a consequential time for our nation.

"I can report to you that we intend to be fit for purpose and focused on the future. We are the Federal Reserve and are as determined as ever to fulfil the mission that Congress has given us."

As well appearing for the first time before the Financial Services Committee, Warsh is also scheduled to appear before the Senate Banking Committee on Wednesday.

Fed chairs are mandated to reappear twice a year before Congress, to deliver a monetary policy report and answer lawmaker questions.

• News Channel