Kevin Warsh Says CPI Data Does Not Mean Inflation Fight Is Over

Kevin Warsh, chair of the Federal Reserve, said the latest data does not mean the job is done and cautioned against assuming everything is settled after the CPI report. According to Odaily, Warsh also said artificial intelligence could disrupt employment in the short term while creating new jobs. Data released by the U.S. Department of Labor on the 14th showed that the rise in the U.S. Consumer Price Index (CPI) eased in June due to falling energy prices, but inflation pressures remained significant. The data showed the year-over-year CPI increase slowed to 3.5% in June from 4.2% in May, still well above the Fed’s 2% inflation target. The Labor Department said the decline in energy prices was the biggest factor behind the moderation in CPI growth for the month, offsetting price increases in other areas such as housing and food. Heather Long, chief economist at Navy Federal Credit Union, said inflation pressures eased in June, but added that the cooling trend could be short-lived as U.S.-Iran military tensions intensify again.