When Chairman Warsh took over as head of the Federal Reserve, the consensus opinion was that the economy had begun to reaccelerate and that additional rate cuts would not be necessary. Warsh, while noncommittal, seemed to confirm that view at the conclusion of his first Open Market Committee Meeting. He followed up on those comments when he participated in the ECB Central Banking forum saying inflation was too high. This week he again reiterated that view in Congressional testimony saying the Fed would not tolerate persistently high inflation.