Federal Reserve Chairman Kevin Warsh Holds First Press Conference

Federal Reserve Chairman Kevin Warsh held his first press conference on June 17 and announced five new task forces to address operations at the central bank. " Warsh declined to provide his own economic projections during the press conference.

Greenspan, who served as Federal Reserve chairman for nearly 19 years until 2006, died at age 100 on June 22. Warsh joined the Board of Governors shortly after Greenspan's retirement.

Warsh said the task forces will examine the balance sheet, communications practices, inflation frameworks, data sources, and productivity and employment measures. He rejected the view that lower unemployment requires higher inflation and stated that inflation is a monetary phenomenon. The communications task force will review the use of forward guidance and dot plots in policy statements.