Warsh Fed Signals 2% Orthodoxy as Trump Confirms Direct Contact With Chair
President says he spoke with Fed Chair Kevin Warsh last week as strategists question whether a debt-laden Treasury can tolerate genuine price stability; PCE methodology critique adds to credibility debate
President Trump disclosed direct contact with Fed Chair Kevin Warsh, sharpening focus on central bank independence just as Warsh recommits to a 2% inflation target. Analysts argue the arithmetic of US debt service makes sustained disinflation politically and fiscally improbable, while separate research questions whether the Fed's preferred PCE gauge is even measuring the economy accurately.