Federal Reserve Chair Kevin Warsh on Tuesday told House lawmakers that the central bank’s policymakers have “no tolerance for persistently elevated inflation” in his first testimony as Fed chief.

Warsh said in his prepared testimony for the House Financial Services Committee that concerns about inflation influenced the Fed’s decision to hold the benchmark federal funds rate steady at a range of 3.5% to 3.75% at the Fed’s June meeting.

“The Fed’s number one objective is to get monetary policy right – or as near to it as we possibly can. That is our clear and constant aim, the star we steer by,” he said. “And if we get policy right – and we will – the inflation surge of the last five years will be a thing of the past.”

“My colleagues and I recognize that high inflation has been an undue burden on American households and businesses. While monthly price fluctuations are inevitable – especially in an unsettled world – underlying inflation over longer time horizons is determined largely by monetary policy,” Warsh said.

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

FED POLICYMAKERS’ INFLATION WORRIES WEIGHED ON RATE CUT OUTLOOK AT WARSH’S FIRST MEETING

Fed Chair Kevin Warsh told the House Financial Services Committee that the central bank won’t tolerate persistently elevated inflation. (Graeme Sloan/Bloomberg via Getty Images)

Warsh was asked about how he would respond if President Donald Trump targeted him or other policymakers in an effort to influence interest rate policy, and the chairman emphasized the Fed is an independent central bank – which the Supreme Court recently affirmed.

“The Supreme Court said that the Federal Reserve and the conduct of monetary policy is independent. To the extent there were questions about it, the Court answered those questions,” Warsh said, adding he would continue to do his job if the president were to attempt to fire him.

Warsh went on to say that his goal for the Fed “is for there to be no politics. To the extent there’s politics there, we’re going to get rid of them.” 

The Federal Reserve is tasked by Congress with pursuing a dual mandate of fostering full employment and price stability in line with a long-run 2% inflation target. Warsh said the Fed will be attentive to both sides of the mandate, though he noted the inflation portion of the mandate is further from the goal at this time.

“In my view, the two parts of the mandate are not in conflict. This is not an either or proposition. The more we can do to deliver low and stable prices, the more we can get it such that people aren’t worried about inflation, the more employers are going to want to hire more workers,” he explained.

“You gave us a remit, we take both parts of it seriously,” Warsh said. “As we look out the window now, the labor markets look to be in pretty good balance. We’ve got some work to do on the inflation front.”

This is a developing story. Please check back for updates on Warsh’s testimony.

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Workers’ unions have previously warned against job losses in South Africa’s mining sector, which employs almost half a million people, external and accounts for more than 4% of national GDP, external.

De Beers is majority-owned by Anglo American, which is reportedly trying to sell it and shift focus to the growing copper market, external fuelled by the recent AI boom.

At the Venetia mine, De Beers has pledged to use those two years of downtime to make infrastructure more “efficient” with increased “capacity”, external, ready to reopen production once market conditions improve.

Times remain tough across the industry, which has seen the International Diamond Consultants’ rough diamond price index almost halve since 2022.

Lab-grown diamonds have gained in popularity in recent years, as consumers voice ethical concerns about miners’ pay and working conditions as well as environmental damage.

Yet De Beers and other established firms have cashed in on those industry changes too, producing their own lab-grown versions at a snip of the price one would pay for natural diamonds.

De Beers is not the first large producer to scale down operations in recent years, but it does occupy a particular place in the public imagination owing to its long history dating back to 1871.

Its founder was Cecil Rhodes, the English colonist whose forces dispossessed indigenous Africans of their land and denied them basic rights

He became a millionaire in the process and justified their disenfranchisement and racial segregation, external to Cape Town’s Parliament several years later, saying “the natives are children… they are just emerging from barbarism, external“.

His legacy in southern Africa has become a lightning rod for discussions about “decolonising” institutions which continue to bear his name.

This includes those that have statues of him and scholarships founded on his enormous wealth – like the UK’s University of Oxford, whose past Rhodes Scholars, external include ex-US President Bill Clinton and former Australian Prime Minister Malcolm Turnbull.

The small businesses behind Britain’s live music industry have been handed a rare piece of good news, as the government’s first long-term music strategy promises a £45 million growth fund, lighter-touch festival licensing and a two-year freeze on business rates bills for venues.

Turn It Up: Our Plan for Music, launched by Culture Secretary Lisa Nandy on Monday, sets out how ministers intend to grow a sector worth at least £8 billion to the economy. Crucially for the independent operators who make up most of it, the plan reaches beyond stadium headliners to the promoters, labels, managers and venues that develop talent.

The Music Growth Package, now boosted to £45 million after a £15 million injection from Arts Council England, will support more than 2,000 projects and at least 40,000 artists and music professionals over three years. For the first time, the funding will also be open to mid-career artists, band managers, labels and publishers, many of them small firms and freelancers.

For festival and event organisers, the licensing reforms may prove the most practical win. Temporary Event Notices will rise from 15 to 20 per year, with total event days up from 21 to 26, while festivals will be offered longer licences, a minimum of three years for new events and five years for existing ones. A 15 per cent business rates relief for live music venues has also been confirmed, with bills frozen for the next two years.

The Night Time Industries Association, which represents clubs, bars and late-night operators across the UK, worked alongside government and UK Music in shaping the plan and says many of the sector’s priorities are reflected in it.

Michael Kill, chief executive of the NTIA, said: “It is extremely encouraging to see the Government deliver a long term strategy that recognises music as one of the UK’s greatest cultural and economic assets. We have been proud to work alongside colleagues from across the industry to help shape this plan and it is positive to see that collaboration translate into meaningful action.”

“The success of UK music depends on every part of the ecosystem working together. That means supporting not only artists and venues, but also festivals, promoters, clubs, DJs, producers, electronic music and the independent businesses that develop talent and create opportunities across the country. These are all vital parts of our music landscape and deserve recognition and support.”

The warm words mark a change of tone from an association that only weeks ago branded the Chancellor’s summer VAT cut a ‘superficial fix’ that sidelined clubs and festivals. The underlying pressures have not gone away. Industry research has warned that the late-night economy could lose 10,000 businesses and 150,000 jobs by 2028 without intervention, even as music tourism delivers a record £11.2 billion for UK towns and cities.

Kill acknowledged as much. “The commitments to invest in grassroots music, reform festival licensing and support future talent are positive steps. There is still work ahead to secure the long term sustainability of venues, clubs and independent operators, but this plan provides a strong foundation and we look forward to continuing to work with government and industry partners to help deliver it.”

For the SMEs that keep Britain’s stages lit, the plan is a foundation rather than a fix. But after years of asking Whitehall to listen, the industry will settle for a government finally singing from the same song sheet.

Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.