Fed's Semiannual Report to Congress: US Inflation Still Notably Above 2% Target

The US Federal Reserve submitted its first semiannual Monetary Policy Report to Congress under Chair Kevin Warsh on Friday, July 10, 2026 (19 Tir 1405). The report states that US inflation has remained notably above the Fed's 2% target over the past year, though trimmed-mean inflation gauges have eased somewhat. The Fed attributed part of the inflation rise to the Iran war and US trade tariffs. It described economic growth as "solid" and productivity as "strong," and assessed banking-system risk as low. The Fed pledged to "deliver price stability." The report sets the stage for Warsh's congressional testimony next week.