WASHINGTON — Federal Reserve Chair Kevin Warsh promised Tuesday to “put these years of high inflation behind us” and lower prices, including mortgage rates, for everyday Americans as inflation remains at the highest level in two years.

Warsh appeared before lawmakers on Capitol Hill just after the government’s latest monthly inflation data showed a slight drop, led by falling gas prices as the war in Iran cooled. 

But routine costs like food and fuel remain 3.5% higher compared to a year ago, a level of inflation last seen in May 2024, according to the Bureau of Labor Statistics’ Consumer Price Index for June. The report comes as the United States and Iran again ramped up the exchange of rocket fire last week in the Strait of Hormuz, a chokepoint for a significant portion of global oil.

The grilling by members of the House Committee on Financial Services marked Warsh’s first time before Congress since being confirmed to lead the central bank. 

The nation’s top banker faced questions not only about inflation, but also how he plans to insulate the Fed from President Donald Trump, following the U.S. Supreme Court’s decision to increase the president’s authority over agencies.

Warsh told lawmakers he will ignore political pressure and “follow the data” when deciding monetary policy decisions.

Warsh’s appointment was made after Trump’s long and public pressure campaign on former Fed Chair Jerome Powell to lower interest rates, and his firing of Fed Board Governor Lisa Cook. Trump also targeted Powell with a federal investigation over renovation costs, but eventually dropped the probe.

‘A potential second surge in inflation’

Financial Services Committee Chair French Hill, an Arkansas Republican, warned during questioning “a potential second surge in inflation is appearing due to factors outside the Fed. What the Fed can control is how it reacts.”

Hill said he was “encouraged” to hear Warsh commit to lowering inflation to the Fed’s target of 2%.

“Inflation affects Americans in the here and now, not in some hypothetical future composed of long-term projections. … How do you and your colleagues on the open market committee plan to accomplish that?”

Warsh said the Fed will examine interest rates and the central bank’s assets and liabilities to harness inflation.

“We have the tools to deliver that. So it’s a function of commitment, responsibility, and tools, and we’re three for three, and we’ll deliver,” he said.

Hammering on the topic of high costs of living, Rep. William Timmons, R-S.C., said “the people I represent should not have to endure another sustained period of elevated inflation.”

Warsh said he agreed with Timmons’ “diagnosis” that American households and businesses have suffered an “undue hardship.”

“What I would also say is I’m not in the business of trying to prejudge what the (Federal Open Market) committee I’m honored to lead decides,” Warsh said. “I think we need to have a continued good family fight on this subject. That’ll start again in a couple of weeks, and when we have news for you about exactly the methods of solving this problem, we’ll be very clear about what they are and so will the American people.”

Communications with public

Several questions from committee Democrats centered on how Warsh plans to communicate with the public after he announced plans to pare back press conferences and announcements. 

Rep. Nydia Velázquez, D-N.Y., asked Warsh if he can “commit today to creating a fixed public standard for which (Federal Open Market Committee) decisions and procedural changes trigger a press conference rather than deciding case by case which ones might be worth it?”

Warsh said it is “immediately important to think about reforms, including communications.”

“I don’t expect any of the changing communications to be about hiding the ball,” he said.

Rep. Andy Barr, a Kentucky Republican, cited a Wall Street Journal article criticizing the “constant yammering, long policy statements and press conferences” to signal future policy moves.

“Chairman Warsh, why is it important to do away with the dot plot and end once and for all forward guidance?” Barr asked, referring to a graph displaying data as dots.

Warsh said his Fed will not share “every passing thought.”

“I think being somewhat more circumspect in our communications, at least for me, is a better way of calling balls and strikes,” he said.

Will he ‘follow the president’s wishes’?

Warsh also faced numerous questions from Democrats on his commitment to protecting the Fed from Trump’s attempts to interfere.

Rep. Gregory Meeks, a New York Democrat, said “If the president publicly pressures you to pursue a different course than the one you believe the economic data supports, will you follow the president’s wishes or follow the data?”

“My commitment to you is to follow the law and follow the data, follow our very best judgment,” Warsh answered.

Meeks shot back: “Even if he publicly criticizes you for doing it? … Publicly criticizes you and tells you how disappointed he’s in you and all of that? Will you still do what the data tells you to do? … You ready for that?”

“I’m ready to follow the law, and I’m ready for the Fed to deliver on the expansive remit that you gave us,” Warsh replied.

WASHINGTON — The Republican-led U.S. Senate served up a rare public check on President Donald Trump’s agenda Tuesday when it voted to approve a House-passed War Powers Resolution to end hostilities in Iran.

Senate approval marked the first time both chambers have agreed in a rebuke of Trump over his war in Iran.

The concurrent resolution, which passed 50-48, does not require the president’s signature and its enforceability has been a perennial topic of debate. 

The Senate’s approval occurred against the backdrop of the administration’s peace deal negotiations with Iran, which have been criticized from both sides of the aisle.

Four Republicans joined Democrats in voting for the measure: Lisa Murkowski of Alaska; Rand Paul of Kentucky; Louisiana’s Bill Cassidy, who recently lost his primary race after Trump endorsed an opponent; and Susan Collins, who’s fighting a tough reelection campaign in Maine. 

Democrat John Fetterman of Pennsylvania voted no. Paul and Fetterman have broken ranks with their parties on several previous Iran War Powers Resolution votes.

Republican Sens. Mitch McConnell of Kentucky, who was recently hospitalized, and Dave McCormick of Pennsylvania did not vote. McCormick was with Trump on a trip to Pennsylvania.

Debate over impact

Trump administration officials, including Secretary of State Marco Rubio, argue that War Powers Resolutions are not constitutional. 

The U.S. Supreme Court in 1983 ruled against the validity of congressional measures that do not require a president’s signature.

Senate Minority Leader Chuck Schumer, D-N.Y., said Congress “stood up to Donald Trump and voted to end his costly, unnecessary, and devastating war with Iran.”

“Let me be clear: for the first time, this resolution has passed both chambers of Congress and does not require the President’s signature. The message from the only branch of government with the power to declare war is unmistakable: the Trump administration must withdraw U.S. forces from hostilities in Iran. The pressure on Republicans mounts,” Schumer said in a statement following the vote.

Rep. Gregory Meeks, D-N.Y., who sponsored the original resolution that passed the House on June 3, said the measure is binding and the president “must cease all hostilities against Iran.”

“Regardless of what President Trump says, this measure is binding under the War Powers Resolution, and I will explore all legal avenues to ensure the Executive complies with the will of Congress. Congress never authorized this failed war, and the president certainly has no authority to continue it indefinitely without our consent as the Constitution demands,” Meeks, the top Democrat on the House Committee on Foreign Affairs, said in a statement.

The White House declined to comment on the vote.

Negotiations continue

Administration officials, who maintain hostilities ended in early April, are on a 60-day clock to hammer out a final agreement with Iran. 

As part of a temporary memorandum of understanding in effect during talks, the administration lifted its naval blockade of Iranian ports and economic sanctions on Iranian oil, allowing the Islamic Republic to now sell on the global market. 

The interim deal also charges Iran with demining the Strait of Hormuz and allowing tankers and cargo ships to travel unimpeded while Iran and Oman create a scheme for passage through the narrow shipping route where one-fifth of the world’s petroleum traveled prior to the war.

Trump issued social media threats to Iran over the weekend as Iran’s new Persian Gulf Strait Authority continued to impose certain requirements for ships to pass.

Thirteen American service members died in the war launched by the U.S. and Israel on Feb. 28, and over 400 have been injured, according to the Pentagon. Thousands of civilians across Iran and the Gulf region were killed during the fighting.

Final peace negotiations between the United States and Iran officially began Thursday, Vice President JD Vance said at a late morning press conference in Washington, starting a 60-day countdown for the Islamic Republic to safely open the Strait of Hormuz, the U.S. to lift a blockade on Iranian oil, and for the two nations to hammer out a nuclear deal.

The agreement is “a win-win situation” for the U.S., Vance said.

“If they change their behavior, big things are going to happen for Iran and for the world,” Vance said. “If they don’t, no skin off our backs” because Iran’s nuclear program and military are “still destroyed.”

The agreement immediately stops hostilities that began Feb. 28. The war claimed the lives of 13 U.S. service members, thousands of civilians in Iran, Lebanon and across the Gulf region, and disrupted the global economy. 

Vance said the “Israelis, just like everybody else, have to respect this process,” highlighting that the agreement binds Israel to ceasing its bombing campaign in Lebanon against Iranian-backed Hezbollah fighters.

Without specifying a date, Vance said he expects to brief Congress but is “quite confident” the administration does not need congressional approval on terms of the deal that will lift sanctions on Iran, despite the claims of some U.S. senators.

‘Just signed it’

Vance was slated to finalize the 14-point memorandum of understanding in Switzerland Friday, but President Donald Trump unexpectedly announced early Thursday morning that he had signed the deal while attending a state dinner hosted by French President Emmanuel Macron at the Palace of Versailles after the G7 summit among the world’s wealthiest nations concluded.

“Just signed it,” Trump told journalists after hugging and saying goodbye to France’s president and first lady Brigitte Macron just after 1 a.m. local time, according to the traveling press.

Iranian President Masoud Pezeshkian posted images on social media early Thursday of the signed agreement in English and Farsi. 

“This text is the reflection of the voice of a nation that did not trade its dignity and independence for any threat or pressure. What was recorded today was the result of national resilience, political rationality, and responsible diplomacy,” he wrote, according to a translation on X.

Trump posted a series of messages about the signed memorandum on his own social media site, Truth Social, Thursday morning, including a link to a news article about Pope Leo commending the deal. The Trump administration engaged in a public war of words with Leo in April.

“These fools, who think I haven’t been tough enough on Iran, when the Stock Market Just Hit A RECORD HIGH, and Oil prices are ‘tumbling’ down, are either jealous, bad people, or stupid. MAKE AMERICA GREAT AGAIN!!! President DJT” the president posted online early Thursday.

Hours later, in all caps, he wrote: “OIL IS FLOWING, IRAN CAN NEVER HAVE A NUCLEAR WEAPON (THE WORLD WILL BE SAFE!), THE STOCK MARKETS ARE ROARING, JOBS ARE AT RECORDS, AND PRICES ARE DROPPING (AFFORDABILITY!). OUR COUNTRY IS STRONG, SAFE, AND RESPECTED LIKE NEVER BEFORE. ‘YOU’RE WELCOME!’ President DJT”

‘Foreign policy blunder’

Several, including some from the president’s own party, have been critical of the agreement.

Sen. Bill Cassidy, a Louisiana Republican who recently lost his primary after Trump endorsed an opponent, said in a statement on social media the deal “is the worst foreign policy blunder in decades.”

“Reagan is rolling over in his grave. Iran’s nuclear ambitions were not curbed, and they have learned that threatening the Strait of Hormuz works and will undoubtedly leverage it in the future. Now, Iran gets to build brand-new infrastructure under this deal.

“Before the war, the strait was open, Iran was being crushed by sanctions, and 13 service members were still alive. Now, 13 Americans are dead, families have paid billions at the pump, sanctions will be lifted, and the bombing has stopped.”

Sen. John Kennedy, also a Louisiana Republican, said on the Senate floor Thursday morning “We ought to give peace a chance. It’s only 60 days and we’re going to just have to trust the president on this one.”

Jonathan Shorman contributed to this report.

Far from “unconditional surrender” or the “total and complete victory” President Donald Trump claimed would result from his unilateral decision to launch a war against Iran, the protracted U.S. military action is reportedly winding down with a memorandum of understanding between U.S. and Iranian officials that includes lifting U.S. sanctions, unfreezing Iranian assets, ending the U.S. blockade, reopening the Strait of Hormuz with Iran still in control, creating a $300 billion reconstruction fund, and the promise of further negotiations to end Iran’s nuclear program. 

In other words, the provisional agreement to end the war that has cost $30 billion and 13 U.S. lives appears to more or less restore the status quo before the war started. The biggest achievement of the outlined deal is to reopen the Strait of Hormuz, which wasn’t closed until the U.S. started bombing. Details of a proposed effort to keep Iran from building a nuclear weapon are still not figured out. Iran’s hardline regime is still in power.

None of this sounds like a win to Wisconsin U.S. Sen. Tammy Baldwin, who has repeatedly tried and failed to get her colleagues to pass a War Powers resolution to assert congressional warmaking authority, end the bombing and stop what she calls Trump’s illegitimate and “100% unnecessary” war.

“We have no assurances that war won’t continue, and no evidence that Americans are any better off today than they were before this all started,” Baldwin said in a press call Wednesday, calling the Iran war “a disaster for Wisconsinites.”

Baldwin is not alone. According to an April Marquette University Law School poll, 63% of Americans said there was not sufficient reason to start the war, and 68% said they disapproved of the way Trump has handled it.

Even Wisconsin’s Republican Sen. Ron Johnson, an ever-dependable Trump ally, told Bloomberg Television this week, “I don’t like the final outcome here. I’m sure President Trump doesn’t like the outcome. He would have liked unconditional surrender. It didn’t happen.” 

Johnson threw in a loopy tangent, blaming “gun control” for the inability of the Iranian people to overthrow their country’s brutal regime, calling it “a good lesson for the American people.” 

But Baldwin and Johnson appear to be mostly in agreement that, unproductive as it was, it’s better to wind down the war than to continue pushing forward with a costly and fruitless military adventure.  

“Look, peace is unequivocally a good thing, and something I have been fighting for since this president launched this unnecessary war,” Baldwin said Wednesday.

Speaking to Bloomberg on Tuesday, Johnson said: “If you’re going to recognize reality and realize that they still had a stranglehold over the straits and you want to open the straits up, there’s got to be some give and take.” 

So there it is: without knowing the details, Johnson supported Trump’s deal to end the war because it got Iran to reopen the strait it closed because Trump started the war in the first place. As for Iran’s nuclear program, “We can always go back in, the minute they make a move toward their nuclear sites, we can bomb them again,” Johnson asserted, echoing Trump.

“I don’t know what’s in the memorandum of understanding,” he added.

Being left in the dark about the details did not appear to trouble Johnson. Baldwin, in contrast, made it a point of her press conference, noting that Trump had repeatedly declared victory in Iran only to have the war continue.

“We need to make sure that whatever is in this agreement is real and also good for the American people,” she said, flagging the surge in gas prices that cost the average Wisconsin family $378 more since the war started as well as a huge hike in fertilizer prices that has taken a heavy toll on farmers.

The Iran nuclear deal Trump tore up, negotiated under the administration of President Barack Obama, included intrusive inspections that ensured Iran’s nuclear weapons capacity was not advancing, Baldwin noted. “I can’t see possibly how we could end up with a stronger deal curtailing Iran’s nuclear program 60 days from now than we did back in 2015 after months of multilateral negotiation,”  she said. “But again, Trump ripped up that deal, and we’re going to possibly, probably end up in a much worse place when we finally see this wind down and end.

Asked whether it still makes sense to push Congress to step up and pass a War Powers resolution, Baldwin answered, “absolutely.”

“When this president brought us into his war of choice, we weren’t under attack, we weren’t under any imminent threat of attack from Iran, he brought us into an illegal war.” Ever since then, Democrats have been introducing War Powers resolutions. 

“At first we had one Republican join us, then two, then three, then four. We are going to carry on until we are able to bring this to a close,” Baldwin said. 

Unlike Johnson, she was not reassured by Trump’s assertions that if the deal doesn’t work out, the U.S. can just start bombing again.

“I think it’s quite possible that some of my Republican colleagues who had previously joined us were taking the president’s word that a deal to end the war, an agreement to end the war, was upon us, and around the corner. I think they’ll soon find out that that’s not the case,” she said.

No matter how many conflicting assertions Trump makes about the war, it’s up to Congress to do its job. 

WASHINGTON — The White House on Wednesday read to reporters a 14-point memorandum of understanding with Iran to stop the ongoing war and allow for further negotiations, but did not release the exact text.

The 60-day MOU outlines the opening of the Strait of Hormuz, sanctions relief and reconstruction funds for Iran, and the promise of negotiations on Iran ending its nuclear program. Senior administration officials say economic and sanctions relief will only occur if Iran is on “good behavior.”

“If we think that they’re just dragging us along and kind of bull- – – -ting us, then we’ll be very quick to pull the plug on it and go back to tightening the screws on them very, very aggressively,” a senior administration official who did not want to be identified said on a Wednesday afternoon call with reporters.

President Donald Trump told reporters in France he “might” stay in Europe for the ceremonial signing of the memo, but doubted it.

“This is a memorandum of understanding. It’s very important, but it might not be the kind of a document that I should be signing,” Trump told reporters at his final press conference of the G7 summit, a meeting of the world’s wealthiest capitalist economies.

Earlier Wednesday he told reporters at the G7, “If I don’t like it, we’ll go back to shooting at them, dropping bombs on their head.”

Trump announced Monday he had reached a ceasefire agreement with Iranian officials to temporarily end the war, which has lasted longer than 100 days, but the administration had not released any part of the agreement until Wednesday. Members of the U.S. Senate complained they had not seen the details and some said they wanted to vote on a final agreement.

Iran’s Prime Minister Shehbaz Sharif confirmed in a social media post Monday that a deal had been reached.

Iranians requested the United States not release the text until language was finalized, according to a second senior administration official who added “it was obviously unfortunate we weren’t able to put it out right away.” 

“We were trying to accommodate their domestic messaging and their domestic politics. We’re trying to build trust with them, and that’s what they asked us to do, so we agreed to do it.”

Iran’s Foreign Minister Seyed Abbas Araghchi warned on social media June 12 against speculation on the deal which “has never been closer” and said details would be shared with the public “in due course.”

Nuclear weapons

The 14-paragraph “Islamabad memorandum of understanding between the United States of America and the Islamic Republic of Iran,” which the second senior administration official read on the call, declares an “immediate and permanent termination of military operations on all fronts, including in Lebanon.”

The White House declined to provide a written copy of the MOU to reporters.

Israel’s Prime Minister Benjamin Netanyahu has not agreed publicly to withdraw forces from Lebanon, which emerged as a second front of the war that the U.S. launched in tandem with Israel in February.

The U.S. and Iran have 60 days, “extendable with consent” to reach a final deal.

According to the agreement, Iran “reaffirms that it shall not procure or develop nuclear weapons.”

The document charges the U.S. and Iran to agree on how to deal with Iran’s buried stockpile of enriched uranium, with the minimum arrangement being the “down blending” of the material on site under the supervision of the International Atomic Energy Agency.  

“The two parties also agreed to discuss the issue of enrichment and other mutually agreed matters related to the Islamic Republic of Iran’s nuclear needs based on a satisfactory framework being agreed upon in the final deal,” according to the MOU.

In 2018, Trump pulled the U.S. out of a previous nuclear agreement brokered by former President Barack Obama’s administration.

Obama appeared skeptical Saturday of Trump’s nuclear negotiations with Iran.

“It is doubtful that any agreement that arises is going to be significantly different or a significant improvement from the deal that we had in the first place and had worked for, for a long stretch of time before we, the United States, pulled out of it,” he told ABC News’ Robin Roberts.

Reopening Strait of Hormuz

The agreement also commits the U.S. to “immediately” begin the removal of its naval blockade on Iranian ports, with a full and final stoppage to occur within 30 days.

The U.S. will also have to remove military forces from the vicinity of Iran, meaning the American forces “will return our force posture in the region to that which existed before the conflict started,” according to the administration official.

Roughly 40,000 troops were in the region prior to the war. That number increased to approximately 50,000 after Feb. 28.

For its part, Iran must “make arrangements using its best efforts for the safe passage of commercial vessels with no charge for 60 days only from the Persian Gulf to the Sea of Oman and vice versa,” according to the agreement. 

However, the MOU continues: “The traffic of commercial vessels will immediately start in considering the need for removing the technical and military obstacles, and demining by the Islamic Republic of Iran will be instated within 30 days.”

From there, Iranian officials agreed to negotiate a plan with the sultan of Oman and Persian Gulf states on “future administration and maritime services in the Strait of Hormuz.”

The war’s de facto closing of the strait has rocked economies across the globe, as 20% of the world’s petroleum exports passed uninterrupted through the narrow waterway prior to the conflict. Oil prices reached $120 per barrel during the height of the conflict but have fallen to roughly $79 this week.

Article 38 of the United Nations Convention on the Law of Sea declares passage through straits a right that should not be impeded, though neither the U.S. nor Iran are party to the international agreement.

$300B in reconstruction funds

In perhaps one of the most “controversial” parts of the MOU, according to the senior official, Iran could see up to $300 billion in reconstruction funds.

The White House official was quick to downplay the prospect of Iran reaping billions of U.S. dollars.

“Note that it doesn’t require us to do anything to, one, to ever pay a cent of money to the Iranians, (and) to ever contribute money to this reconstruction fund,” the official said.

“What it says is that if we get to a final deal, and if the Iranians behave, we will permit the sanctions relief that would allow, for example, the Emiratis to build a power plant in Iran. That’s all it says. If they do what they have to do, we will permit the investment and the reconstruction of their country,” the official said.

Additionally, upon the signing of the MOU, the U.S. Department of Treasury will immediately issue waivers for the export of Iranian crude oil and other petroleum products, as well as associated activities, including bank transactions and insurance, according to the document.