Fed Chief Warsh Vows to Defeat Inflation With Policy 'Regime Change'

New Federal Reserve Chairman Kevin Warsh delivered hawkish remarks before the U.S. House Financial Services Committee, signaling a fundamental shift in how the central bank will approach monetary policy. He described inflation as a "tax" that the Fed is obligated to eliminate and announced his intention to pursue a "regime change" in monetary management. Warsh argued that the Fed needs to restore its credibility as an inflation fighter, which he said had been damaged over the past five years. He also expressed optimism about the long-term productivity benefits of the AI investment boom. His firm tone reinforced market expectations for rate hikes in the coming months.