Warsh’s Fed shows it’s serious about taming inflation. Why Wall Street now believes it.

Federal Reserve Chair Michael Warsh announced the central bank projects inflation will reach 2 percent by 2029 using modestly elevated interest rates, according to the Fed's latest economic projections. Wall Street analysts cited the Fed's recent interest rate decisions and policy statements as evidence the institution intends to pursue this target. The Fed has maintained its benchmark interest rate in a range that remains above historical averages as of early 2026. Inflation had remained above the Fed's 2 percent target for an extended period before beginning to decline.

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