{"text":[[{"start":8.65,"text":"Kevin Warsh insisted the Federal Reserve would be “resolute” in its drive to bring inflation under control, doubling down on his hawkish approach even as official data suggested price growth had cooled. "}],[{"start":20.700000000000003,"text":"The new US central bank chair told lawmakers on Tuesday the Fed should not declare “mission accomplished” after a single positive report as he reiterated its commitment to lowering inflation to its 2 per cent target. "}],[{"start":34.150000000000006,"text":"“Inflation is a choice,” Warsh said at a hearing before the House Committee on Financial Services. "}],[{"start":40.400000000000006,"text":"“The members of our committee have no tolerance for persistently elevated inflation and we share a resolute commitment to ensure price stability.”"}],[{"start":49.150000000000006,"text":"Warsh’s remarks follow the release of government statistics on Tuesday that showed inflation slowed in June as petrol prices tumbled during a period of respite in the Middle East conflict. But rising tensions between the US and Iran mean prices could climb again in the months ahead."}],[{"start":64.80000000000001,"text":"The soft inflation report prompted traders to cut bets that the Fed would raise interest rates in the near term. Markets now expect a quarter-point rate rise in December, having previously predicted such a move by October."}],[{"start":77.50000000000001,"text":"But Warsh was circumspect about reading too much into the most recent report. “There might be some that look at this morning’s data and say, ‘Oh, mission accomplished. Everything is swell.’ That is not my view,” he said. "}],[{"start":91.15000000000002,"text":"He added that the central bank would “take ownership” of inflation. “This isn’t a time for us to pass the buck to blame others. The Federal Reserve can and will deliver price stability,” he said. "}],[{"start":103.05000000000003,"text":"Warsh’s appearance before Congress on Tuesday marks his first grilling by lawmakers since being confirmed as Fed chair in May after being nominated for the role by Donald Trump. "}],[{"start":114.75000000000003,"text":"The president has demanded lower interest rates and berated the previous central bank head, Jay Powell, for failing to cut them sufficiently. Warsh on Tuesday insisted Fed independence was “sacrosanct” and vowed to “follow the law and follow the data” regardless of any White House criticism."}],[{"start":132.30000000000004,"text":"The new chair has promised a slate of broad reforms at the Fed for what he views as policy errors that contributed to a surge of inflation in the wake of the pandemic. Inflation has run above the central bank’s target since 2021. "}],[{"start":146.65000000000003,"text":"He wants to overhaul how the Fed communicates with the public, shrink its $7tn balance sheet, modernise how it collects data and refresh its thinking on inflation. He has established five task forces as part of this process. "}],[{"start":160.70000000000005,"text":"Warsh said on Tuesday that the task forces — which include prominent members including former Bank of England governor Mervyn King and crypto investor Marc Andreessen — were now in “discovery mode” and hoped to provide “real conclusions” by the end of 2026."}],[{"start":176.30000000000004,"text":"Warsh was bullish about how artificial intelligence could rewire the US economy, fuelling a “material improvement in productivity” that would feed through to both wage gains and economic growth. "}],[{"start":189.45000000000005,"text":"“This is perhaps the most significant change in our economy in my adult lifetime,” he told lawmakers, describing AI as a “huge opportunity”."}],[{"start":198.30000000000004,"text":"He said the race to build data centres and demand for AI equipment and software was driving a “striking” level of business investment, with companies’ high-tech spending up by a quarter in the past year. "}],[{"start":209.40000000000003,"text":"But he cautioned that any far-reaching AI boost to productivity could take time to materialise. “The long term can be quite far out and we’ve got to monitor things month by month, quarter by quarter,” he said. "}],[{"start":231.20000000000005,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1784075992_5094.mp3"}