US Federal Reserve Chairman Kevin Warsh vowed that the Central Bank will continue the fight against inflation, during his first testimony to Congress as Fed chief.

Speaking before the House Financial Services Committee, Warsh stressed that high inflation has created a heavy burden on American families and businesses.

"Members of the Federal Open Market Committee have no tolerance for persistently high inflation. We are determined to restore price stability," he declared.

His comments came after data released on Tuesday showed that annual U.S. inflation reached 3.5% in June. Although the pace of price increases slowed compared with the previous month, the level remains well above the Federal Reserve's 2% target. The price increase has also been affected by global energy shortages caused by the war in Iran.

The hearing focused on the Fed's Semiannual Monetary Policy Report, where Warsh is expected to face questions about the central bank's strategy for curbing inflation and the performance of interest rates.

At the last Federal Open Market Committee meeting, nearly half of policymakers signaled the possibility of further rate hikes this year. However, the latest inflation data has tempered expectations for such a move.

This is Federal Reserve Chairman Kevin Warsh's first testimony before Congress since becoming head of the nation's central bank in May.
This comes just hours after the Consumer Price Index report for June was released.
The report showed that a sharp drop in energy prices last month lowered annual inflation to 3.5%, from 4.2% in May. On a monthly basis, prices fell by 0.4%, the first one-month decline in six years.