Fed Chair Warsh: "No Tolerance" for Inflation as Dow Crashes

The Dow Jones Industrial Average suffered its worst day of the year Wednesday after Federal Reserve Chairman Kevin Warsh signaled the central bank will not cut interest rates soon. In his first major policy statement since taking office in May, Warsh declared that officials have “no tolerance for persistently elevated inflation.” The comment crushed investor hopes for a rate cut, triggering a broad sell-off. Warsh’s stance suggests the Fed will keep borrowing costs high until price increases are fully under control.