Kevin Warsh: “But it's to make sure that those changes in oil or beef or eggs or milk don't broaden in the economy, don't have second…”

Short-term interest rates are the predominant tool the Fed can use to lower inflation.

Inflation data are more concerning than trends on the job market.

But what we can do and will do is ensure that any change in relative prices don’t broaden out, don’t have second and third order effects on the economy.

Too many categories are still posting increases above 3 percent on both a six and 12-month basis.