Federal Reserve Chair Discusses New Inflation Measurement Approach

A Reuters report noted that Warsh described the effort as a "data project" focused on underlying inflation trends. Warsh has suggested using trimmed-mean metrics that remove what officials consider extreme price swings.

Treasury yields have increased as investors seek higher returns amid ongoing inflation and federal borrowing needs. Credit card balances have reached record levels while delinquency rates have risen, according to the report. Wage growth has not kept pace with living costs for many households. Equity markets have continued to price in expectations of future rate cuts despite these conditions.

If yields continue to climb, the report states that officials may consider direct intervention in Treasury markets. Such steps could include purchases aimed at limiting long-term rates. Warsh's comments on inflation measurement were made in the context of these market pressures.