Inflation vs Wage Growth: Kevin Warsh Explains the Fed’s Limits

[00:00:01]Hi Mr. Chairman, Brian Cheung with NBC News. Thank you for taking our questions. So, when you say that we've dropped forward guidance for the layperson, that might sound like the Fed's going to say less or offer less insight into where their borrowing costs might go. So, for the person that maybe you might run into at the grocery store where the price tags are rising at a faster pace than their wages at the moment, how would you explain it to them? I don't know if task force might be the answer there, but how would you kind of communicate this era, this chapter of the Fed?

[00:00:27]>> If I told somebody in the milk aisle that I had a task force for that, I think that would be a doing a very poor job. So, I appreciate it. Um if I saw somebody in the grocery store, what I would say to them is that we cannot have a very significant effect on particular prices.

[00:00:46]The price of oil in the markets today or even the the the price of a dozen eggs, um that does not have first-order consequences to what we're doing.

[00:00:55]But, we do have a really important job there, and it's to make sure that those changes in oil or beef or eggs or milk don't broaden in the economy. Don't have second- and third-order effects. That's our job. That's our commitment. That's our capability, and we're going to deliver on it. And if