economy

Kevin Warsh: Fed Has ‘No Tolerance’ for High Inflation

Newly minted Chairman of the Federal Reserve Kevin Warsh testified before lawmakers on Tuesday, promising to bring inflation down and pledging officials have “no tolerance for persistently elevated inflation.”

Warsh succeeded Jerome Powell to head the Fed, our nation’s central bank, on May 22, 2026. The Fed is tasked with steering the economy towards maximum employment and stable prices.

Under Powell’s tenure as Fed chairman from 2018 to 2026, the U.S. experienced an inflation crisis with the U.S. Consumer Price Index (CPI), the measure of the average change consumers pay for goods and services, hitting a four-decade high of 9.1% annually.

“If we get policy right—and we will—the inflation surge of the last five years will be a thing of the past,” Warsh affirmed Tuesday. “Inflation’s a choice, meaning monetary policymakers need to choose lower prices.”

Warsh’s testimony comes on the same day the U.S. Bureau of Labor Statistics (BLS) reported inflation fell to 3.5% in June from 3.9% in May, the largest 1-month decrease since April 2020.

The CPI decreased 0.4 percent as gasoline prices fell substantially due to a temporary ceasefire in the Iran War, after rising 0.5 percent in May.

Several items saw substantial year-over-year increases, including:

  • Energy, rising 15.7%.
  • Apparel, increasing 3.9%.
  • Shelter, increasing 3.3%.
  • Food, rising 3.0%.

“June finally brought some relief on inflation,” Heather Long, chief economist at Navy Federal Credit Union, told CNBC. “The concern is that this relief will be short-lived as the war in Iran re-starts. It’s too uncertain to know how the inflation story ends.”

Ryan Young, a senior economist at the Competitive Enterprise Institute, said June’s inflation relief is “likely temporary,” the Washington Times reports.

“The latest Iran flare-up will likely push July’s inflation numbers back up,” he said. “Uncertainty about the president’s strategy and goals in Iran makes it unlikely that energy prices will come back down to pre-war levels until at least next year.”

June’s inflation decrease is certainly welcome news for many families feeling a financial pinch today. According to new research, millions of Americans are relying on debt to buy groceries and are unable to pay their credit card balance in full or missed their minimum payment.

Additionally, a record number of Americans – 9.16 million – are in default on their student loan payments, meaning they’re more than one year behind.

All told, millions of Americans – for a variety of reasons – are struggling financially today. Yet, even if inflation falls back to the Federal Reserve’s 2% target, Americans won’t see a decrease in the high prices they’re experiencing.

According to the BLS’ CPI Inflation Calculator, $100 U.S. dollars in June 2016 has the same buying power as $138.56 today. Unless families have seen at least a 38% wage increase over the last decade, they can afford less now than they could 10 years ago.

For prices to fall, the U.S. economy would have to experience a negative inflation rate, which generally only happens during recessions or depressions. This means Americans can expect high prices to stay – even if the rate of increase moderates to 2%.

For American families, financial struggles can increase the importance of intentional communication and planning. A 2017 study by Ramsey Solutions found money fights are the second leading cause of divorce, behind infidelity.

Nearly half of couples with at least $50,000 or more in consumer debt cite money as a top reason for arguments, while those who say they have a “great” marriage are almost twice as likely to frequently discuss money compared to those who say their marriage is “okay” or “in crisis.”

“Both high levels of debt and a lack of communication are major causes for the stress and anxiety surrounding household finances,” the study found.

Craig Constantinos, MA, LPCC, a counselor in Focus on the Family’s Counseling Services Department, said couples can use financial stressors as an opportunity for growth in their relationship.

“Stress and anxiety about the economy can often lead to frustration and conflict in marriages, as finances is one of the areas where different perspectives are most obvious,” Constantinos told us.

“Having a grace-filled conversation about budgets and spiritual and financial goals can lead to deeper understanding in a marriage, which can turn the challenge of financial uncertainty into an opportunity to build one’s relationship with God and their spouse.”

To learn more about how you can successfully handle finances in your life or marriage, check out our free resources below.

To speak with a family help specialist or request resources, please call us at 1-800-A-FAMILY (232-6459).

Related articles and resources:

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Unlock the Secrets to a Financially Secure Marriage

Being Wise With Your Money During a Crisis

Healthy Budgeting Habits for Your Marriage

When Your Money and Marriage Clash

Getting on the Same Page Financially in Marriage

Getting a Reluctant Spouse Onboard with Budgeting

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Inflation Rises to 3.8% Making Life More Unaffordable for Families

Photo from Getty Images.

Inflation Rises to 3.8% Making Life More Unaffordable for Families

Inflation skyrocketed in April to the highest rate in three years as the Iran war caused oil shortages and increased energy prices worldwide.

The cost of goods and services rose 3.8% in April, compared to a year earlier, the U.S. Bureau of Labor Statistics (BLS) reported on Tuesday. The cost of energy rose 3.8% in the month of April, following a 10.9% surge in March.

The nearly 15% rise in the cost of energy over the past two months accounts for over 40% of the total increase in inflation.

Americans currently pay around $4.50 for a gallon of regular gasoline, The Wall Street Journal reports, up over 50% since the beginning of the joint U.S.-Israeli operation against Iran in late February.

The BLS reported year-over-year increases in the following categories:

  • Food rose 3.2%.
  • Fruits and vegetables increased 6.1%.
  • Energy rose 17.9%.
  • Gasoline rose 28.4%.
  • Electricity rose 6.1%.
  • Shelter increased 3.3%.
  • Airline fares shot up 20.7%.

CNBC reported other items have increased over the past year:

  • Ground beef is up 14.5%.
  • Tomatoes shot up 39.7%.
  • Coffee prices rose 18.5%.
  • Jewelry is up 16.1%.
  • Delivery services are up 13.6%.

These increases add to the extraordinary level of inflation Americans saw in the wake of the coronavirus pandemic, when the annual inflation rate hit a four-decade high of 9.1%.

“The American economy has entered a new chapter where inflation appears to have stepped up,” Joseph Brusuelas, chief economist at RSM, told The Wall Street Journal, predicting even greater inflation later this year. “Median American families are going to find it very challenging to adjust going into the second half of the year.”

Given the increase in cost for many items families rely on, even after the extraordinary cost increases experienced in previous years, it’s no wonder so many Americans are sour on the state of the economy.

Higher gas prices and worries about affordability led consumer sentiment to reach a record low in May, with a record number of Americans expressing negative feelings about the economy.

Additionally, Gallup found the number of Americans who say their financial situation is getting worse is higher than at any point in the last 25 years – including the Great Recession of 2008. According to Gallup, 31% of Americans say the high cost of living is the most important financial problem facing their family today.

However, the economic news isn’t all bad. Unemployment remains low at 4.3%, the BLS reports, with the economy adding 115,000 jobs in April. And the stock market continues to reach all-time highs, with the Dow Jones Industrial Average just slightly below 50,000.

Nevertheless, many families today find themselves financially stretched and their budgets needing trimmed. According to a 2018 survey by Ramsey Solutions, money is the number one issue couples fight about. Money fights and money problems are the second leading cause of divorce, behind infidelity.

The survey also found:

  • Nearly two-thirds of all marriages start off in debt.
  • One-third of people who say they argued with their spouse about money also knowingly hid a purchase from their spouse.
  • Ninety-four percent of people who say they have a “great” marriage discuss their money dreams with their spouse, compared to the 45% who say their marriage is “okay” or “in crisis.”

The Daily Citizen asked Geremy Keeton, Licensed Marriage and Family Therapist and Senior Director of Counseling at Focus on the Family, about how couples can be proactive when facing financial troubles.

“Financial coordination and problem-solving as a married couple never happen with passivity,” Keeton said. “There needs to be intentionality and planning; it’s a skill, and sometimes couples need to get creative about how to draw upon each of their unique strengths in navigating a joint and structured plan.”

“More importantly,” Keeton stressed, “it’s key to realize that finances are often a symptom [or outgrowth] of couple communication, power dynamics, emotional engagement and even spiritual commitments in the relationship.”

He added:

Working to define — and document — shared value commitments and investing in healthy emotional intimacy can both undergird good financial planning and wise stewardship of shared resources.

To speak with a family help specialist or request resources, please call us at 1-800-A-FAMILY (232-6459).

Related articles and resources:

Counseling Consultation & Referrals

Being Wise With Your Money During a Crisis

Healthy Budgeting Habits for Your Marriage

When Your Money and Marriage Clash

Getting on the Same Page Financially in Marriage

Getting a Reluctant Spouse Onboard with Budgeting

Working with Your Differences

Money Talk: The ‘You’ in ‘Unity’ is Silent

The Total Money Makeover Updated and Expanded: A Proven Plan for Financial Peace

U.S. Economy Shrinks in First Quarter: Here’s How Families Should Respond

President Trump Imposes ‘Liberation Day’ Tariffs: How Families Should Respond

Photo from Getty Images.

In God’s Economy, There is No Need to Panic

According to Merriam-Webster, a panic is “a sudden overpowering fright,” an “unreasoning terror” or widespread concern regarding financial affairs.

The word is rooted in Greek mythology where a so-called “god” named “Pan” was known to elicit extreme anxiety in both man and animal.

In 2025, media and political agitators are the new “pans” of the era. Their goal is two-fold. First, they want to get your attention and earn your click. Second, they want to either confirm or change your opinion to be in alignment with their (usually) radically liberal point of view.

Early Thursday, the ignominious Drudge Report was running the following banner headlines:

“CONSUMER PANIC HITS RICH AND POOR” … “WALL STREET SPIRAL CONTINUES.”

Linking to a Wall Street Journal article, we read that Americans are pulling back on their spending. Walmart CEO Doug McMillon acknowledged that for many, the “money runs out before the month is gone.” Costco’s Chief Financial Officer Gary Millerchip told the publication that customers are being “very choiceful,” which is code for saying they’re buying more essentials and fewer impulse-type items. 

Many families and individuals can relate. 

History is both a good teacher and source of perspective. Financial ups and downs are part of any capitalistic economy. We all know about the Great Depression and more recently, the financial crisis of 2008. But you might be interested to know there have been 48 recessions going back to America’s founding. 

Incidentally, a recession is considered to be a “significant decline in economic activity that is spread across the economy and that lasts more than a few months.” 

Of course, Christians are not immune to fret and worry, though the Bible offers considerable advice on the subject.

“Even though I walk through the valley of the shadow of death,I will fear no evil, for you are with me, your rod and your staff, they comfort me,” wrote King David (Psalm 23:4). We read in Deuteronomy, “Be strong and courageous. Do not fear or be in dread of them, for it is the Lord your God who goes with you. He will not leave you or forsake you” (31:6). “Peace I leave with you, my peace I give to you,” said Jesus. “Not as the world gives do I give to you. Let not your hearts be troubled, neither let them be afraid”(John 14:27).

Recognizing the coordinated effort to rile you up is an important part of avoiding the tidal wave of worry. Don’t take the bait. 

At the same time media outlets and pundits, along with some politicians, are attempting to gaslight you into thinking the country is on the verge of financial collapse, we received the news yesterday that inflation was lower than expected – and egg and gas prices, along with mortgage rates, are all going down.

But wait – might the government shut down tomorrow night, triggering another wave of fatalist headlines and hype that the end is near?

Regardless of where you are or where the economy happens to be, embrace the wise words of the apostle Paul, who urged Timothy,“For God gave us a spirit not of fear but of power and love and self-control” (2 Timothy 1:7).

It was Corrie ten Boom, who survived being imprisoned during World War II in the Ravensbrück Concentration Camp, who wrote, “There is no panic in Heaven! God has no problems, only plans.”

We’ll need to wait for eternity to be free of earth’s problems, but with the Lord’s help and peace, we can still strive to avoid panicking before we get there.

Image from Shutterstock.