Kevin Warsh is a man of catchphrases: task force, first principles, a good family fight. Catchphrases can be useful if we all attach the same meaning to them. Two days of hearings before Congress this week clarified that when Warsh commits to “price stability,” he attaches a different meaning to it than the rest of the Fed does. When I read “the Committee will deliver price stability” in the June FOMC statement, I translated that as PCE inflation at 2% by 2028. When I hear Warsh say "price stability," I am now unsure what he means. If we do not all agree on the yardstick, then a commitment to price stability ... (full story)