Ankara: The US Federal Reserve has 'no tolerance' for persistently elevated inflation, Chair Kevin Warsh said Tuesday, emphasizing that restoring price stability remains the central bank's top priority. According to Anadolu Agency, Warsh, who took office in May, made these remarks during his prepared testimony before the House Financial Services Committee. He highlighted that the central bank's primary objective is to get monetary policy right after US households faced elevated inflation for much of the past five years. Warsh expressed confidence that if the policy is managed correctly, the inflation surge that has troubled the economy in recent years would become a thing of the past. The Fed chair described the US economy as broadly resilient, pointing out that the labor market remained stable with limited layoffs and solid nominal wage growth. He also noted a surge in business investment linked to artificial intelligence, including spending on data centers, equipment, and software. However, Warsh acknowle dged that the extent to which the economy would benefit from the AI expansion remained uncertain, and the Fed was closely monitoring its potential effects on inflation and the labor market. At its June meeting, the Federal Reserve maintained its benchmark interest rate within a range of 3.5% to 3.75% for the fourth consecutive meeting. New projections indicated a division among Fed officials, with some expecting an interest rate increase this year, while others anticipated either no change or a rate cut. The latest data showed a 0.4% decline in monthly inflation in June, marking the first monthly decrease in six years, and a reduction in annual inflation to 3.5% as energy price increases slowed. Warsh also addressed questions about the central bank's independence, affirming his commitment to perform his duties without political influence. He emphasized that partisan considerations should have no place inside the central bank, despite the broader polarized political environment. Warsh underscored the importa nce of maintaining the Fed's institutional independence, arguing that the central bank's effectiveness hinges on public confidence in its decision-making. He assured lawmakers that the Fed's credibility relies on its perceived independence, which is crucial for making the best choices consistent with legal mandates.