Kevin Warsh, the Fed Boss, Talks to Congress About Prices

What’s Happening Today?

Today (Tuesday), Kevin Warsh, the chairman of the Federal Reserve (the "Fed" for short — think of it as the group that watches over the country’s money), is talking to a special team in Congress called the House Financial Services Committee.

This talk is part of a report he has to give every six months because Congress (the people who make laws) said so. The report is about something called "monetary policy" — that’s just a fancy way of saying how the Fed plans to handle money and prices.

Important: The Fed is like the referee for the economy. It tries to keep prices steady so people can plan their lives.

The Price Report That Came Out Same Day

On the same day, a government office called the Bureau of Labor Statistics (they count how much things cost) shared new numbers:

• Consumer prices (the costs of everyday things like snacks, clothes, and games) fell by 0.4% in June.
• This drop was bigger than many experts expected.
• Because prices went down a little, some of the people who make rules about money felt less worried about inflation (that’s when prices keep going up and up, so your allowance buys less candy than before).

Important: A small drop in prices eased worries about prices rising too fast. That’s good news for the Fed’s goals.

What Warsh Promised in His Speech

Before he spoke, Warsh wrote down some words to say. In those prepared remarks, he made a promise:

• He will keep a close eye (that’s "vigilant") on prices.
• He will fight to bring inflation back to the Fed’s special goal: 2% per year (they want prices to creep up slowly, not zoom).

Here is exactly what he said:

"The members of our Committee have no tolerance for persistently elevated inflation. And we share a resolute commitment to restoring price stability," he said.

In kid words: "We won’t let prices stay too high for too long. We are super dedicated to making prices calm again."

How to Watch the Live Stream

If you want to watch Warsh speak live, here’s what to do:

1. The video stream is planned to start at 10 a.m. ET (that’s morning time in New York).
2. Go to the page where the video should be.
3. If you don’t see the video player at that time, refresh the page (click the reload button) and it should appear.

Want to Learn More?

We pulled these extra stories from CNBC that explain things deeper. Click to read:

• Warsh promises inflation will be a ‘thing of the past,’ cites benefits of AI investment boom
• Fed officials were split on direction of interest rates at last meeting, minutes show
• Warsh faces multiple alternative inflation signs as Fed charts new course

You can also subscribe to CNBC on YouTube to see more videos.

Summary

To wrap it up simply:

• Kevin Warsh, the head of the Fed, is talking to Congress today about money plans (a required twice-a-year report).
• New numbers show prices of everyday things dropped 0.4% in June, which surprised people and made some money bosses less scared of inflation.
• Warsh promised to work hard to keep inflation at the Fed’s 2% goal and said the committee won’t accept high prices sticking around.
• You can watch it live at 10 a.m. ET by refreshing the page if needed.
• More articles and a YouTube channel are there if you want to dig deeper.

FAQ

1. What is the Federal Reserve (the Fed)?
The Fed is like the country’s money helper. It tries to keep the economy safe by making sure prices don’t go up too fast or fall too much.

2. What does "2% inflation target" mean?
It means the Fed wants prices of things to go up by only 2% each year. That’s considered a healthy, small increase that shows the economy is doing okay.

3. Why did prices falling make people less worried?
When prices fall a bit, it means things got cheaper. That shows inflation (prices rising) might not be a big problem right now, so the money rulers can relax a little.

4. Who is Kevin Warsh?
He is the chairman of the Federal Reserve — the main boss who speaks for the Fed and helps decide what to do about interest rates and prices. You can read more about him here.

5. What is the House Financial Services Committee?
It’s a group of elected people in the House of Representatives who focus on money, banks, and the economy. They ask questions to the Fed boss during these reports.