Kevin Warsh returns to the Senate Banking Committee today for a second day of testimony. Some highlights from the Q&A: After observing that the Fed has been missing its inflation target for 63 months, Warsh acknowledges the better CPI and PPI data for June as well as the imprecision of the gauges used to measure progress against that target. "Any central bank would be happy to have the data going in the right direction" but the measures of inflation that the Fed uses to target inflation are "imperfect measures of the state of underlying inflation." So one of the task forces is going to see whether we can do better, have better data from external sources" and to "think about how the [BLS and BEA] could do a better job."(Nick Timiraos)