# Kevin Warsh Rejects Labor Damage as Inflation Price

> Fed chief says no harm to jobs needed to hit 2% inflation.
- Title: Kevin Warsh Rejects Labor Damage as Inflation Price | Shortify
- Summary: Fed chief says no harm to jobs needed to hit 2% inflation. Kevin Warsh stated the Fed does not need to damage labor markets to achieve 2% inflation…
- Keywords: kevin warsh, federal reserve, inflation, labor markets, fed policy, 2 percent inflation, disinflation, business, finance, Kevin, Warsh, Rejects
- Source: Yahoo Finance — https://finance.yahoo.com/economy/policy/articles/everyone-seems-missed-13-most-160619465.html
- Published: 2026-09-17T16:06:19+00:00
- Read time: 1 min
- Topics: kevin warsh, federal reserve, inflation, labor markets, fed policy, 2 percent inflation, disinflation, business, finance
## Fed Raises Rates
The Federal Reserve raised its benchmark rate on Wednesday, with the Committee voting to increase the target range by a quarter percentage point to 3¾ to 4 percent.
## Warsh's Inflation Statement
Kevin Warsh declared inflation is too high and has been for too long, stating the Committee had 'removed a dose of accommodation.'

> the plain fact is that inflation is too high and has been for too long
## Labor Market Stance
Warsh said the unemployment rate is running consistent with full employment and does not need to harm labor markets to achieve 2% inflation.

> First, we believe that the unemployment rate is basically running consistent with full employment
## Policy Response Shift
UBS economist Jonathan Pingle noted Warsh's policy response function is now more sensitive to financial conditions than labor markets.

> Warsh's policy response function has shifted substantially versus prior Fed chairs
## Inflation and Labor Balance
Warsh described inflation risks as skewing to the upside while labor risks are roughly balanced, with the labor market 'in good shape.'

> inflation risks skew to the upside while labor risks are roughly balanced
## Warsh's 13 Words
Warsh's thirteen words addressed whether labor-market harm is an acceptable cost of disinflation, rejecting it as a price for hitting 2% inflation.

> I don't believe that we need to do harm to the labor markets to achieve our objective
## Key takeaway

Kevin Warsh stated the Fed does not need to damage labor markets to achieve 2% inflation, rejecting employment harm as an acceptable cost of disinflation.