Warsh holds off on rate signal as US inflation cools to 3.5%
What's next: The Fed meets July 28-29 as policymakers remain split over whether to raise, hold or cut rates.
Federal Reserve Chair Kevin Warsh declined Tuesday to hint at the central bank's next move even after new data showed US inflation cooled more than expected in June. Testifying before the House Financial Services Committee, Warsh said the Fed has "no tolerance for persistently elevated inflation" and called the latest figures only one month of progress, not a victory. Consumer inflation slowed to 3.5% from 4.2% in May, while core inflation, which strips out food and energy, eased to 2.6% from 2.9%. The figures lessen immediate pressure for another rate increase, but Warsh faces a divided 19-member policy committee and warned that higher oil prices tied to conflict in the Middle East could reignite inflation.