Warsh Suggests Fed’s Tariff Remarks Imply Impaired Credibility

Kevin Warsh, who is seen as a possible contender to be the next Federal Reserve chair, suggested the US central bank would be at fault if it cannot prevent tariff-related price hikes from leading to a persistent rise in inflation.

“If central banks assert that outside changes in the price level affect inflation, drive a set of inflation outcomes, then they’re in some ways admitting something against their own interests,” Warsh, a former Fed governor, said Friday at an event in Stanford, California.

Former Fed governor Kevin Warsh.

Photographer: Daniel Acker/Bloomberg

“They’re saying in some sense that their credibility has been impaired,” he added. “They’re saying ...