Story perspectives

Senate Hears Warsh Call to End 2% Fed Target

5/3/2026

Summary

Story summary

Senate Banking Committee heard Kevin Warsh outline to overhaul the Federal Reserve (Fed)’s inflation policy and $6.7 trillion balance sheet.
Warsh testified on April 21 for 2.5 hours, saying price stability should mean “no one’s talking about it,” abandoning the 2% target.
Analysts warn his balance-sheet reduction could raise long-term yields, borrowing costs, and pressure the Dow, S&P 500 and Nasdaq, whose 2026 Shiller PE ratio is the second-most expensive in 155 years.

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Story summary

Senate Banking Committee heard Kevin Warsh outline to overhaul the Federal Reserve (Fed)’s inflation policy and $6.7 trillion balance sheet.
Warsh testified on April 21 for 2.5 hours, saying price stability should mean “no one’s talking about it,” abandoning the 2% target.
Analysts warn his balance-sheet reduction could raise long-term yields, borrowing costs, and pressure the Dow, S&P 500 and Nasdaq, whose 2026 Shiller PE ratio is the second-most expensive in 155 years.