4 Takeaways From the Federal Reserve Meeting

A recurring question was how Mr. Warsh plans to use the tools at the Fed’s disposal to get inflation under control. Those include interest rates and the balance sheet as well as the Fed’s ability to impact financial conditions, which capture the availability of credit across the economy. Mr. Warsh repeatedly mentioned that financial condition had tightened, which he said provided the Fed “some comfort that we’ve got the ability and capability to deliver.” Asked directly whether rate increases would help to tame inflation, he conceded that was one tool that “could well be part of that solution, but I wouldn’t say it’s in isolation.”