Fed Chair Candidate Waller: The central bank needs a new inflation response framework

Kevin Walsh, the nominee for Federal Reserve Chairperson proposed by Donald Trump, stated that the Federal Reserve needs a new framework to address persistent inflation, but did not provide further specific details. During the hearing, Walsh blamed post-pandemic inflation surges on the Federal Reserve and said that high prices still pose a problem for the American people. Walsh said at a Senate Banking Committee hearing on Tuesday, “Although inflation has eased now, and the pace of price increases is milder than a few years ago, hardworking Americans are undoubtedly still feeling the pressure.” He added, “I believe this means that policy implementation requires a mechanism overhaul and a different, entirely new inflation framework.” Walsh did not specify how this would impact interest rates. During Walsh’s speech as the Fed Chair nominee, international gold and silver prices declined. Spot gold fell 1.89%, to $4,729.57 per ounce; spot silver fell 3.25%, to $77.11 per ounce.