Another Interest Rate Hike May Be Ahead as Fed Battles Inflation
Most Fed officials expect another increase this year as stubborn inflation keeps pressure on mortgages, auto loans and credit cards, minutes showed.
- On Friday, Federal Reserve Chairman Kevin Warsh avoided discussing future interest rate moves during a "fireside chat" with International Monetary Fund Managing Director Kristalina Georgieva at a Bangkok meeting of financial leaders.
- The Fed raised its key interest rate to about 3.9% about a month ago, its first hike in three years, as stubbornly elevated inflation likely necessitates further increases to slow spending and cool price pressures.
- Warsh said new technology could become a "vital tool" for central banks, helping economists move beyond "old fashioned models" to analyze underlying inflation trends and access global economic data.
- President Donald Trump criticized the Fed's rate-setting committee, though he still expressed support for Warsh, whom he appointed earlier this year to lead the central bank.
- Most Federal Reserve officials expect another interest rate increase this year, while the Fed's task force on artificial intelligence meets Nov. 16 to address technology's economic impact.
12 Articles
12 Articles
Fed Warsh Sees US Economy Emerging Stronger as AI Investment Fuels Growth and Inflation
Federal Reserve Chairman Kevin Warsh has expressed confidence in the resilience of the US economy and its prospects for stronger long-term growth, noting that a surge in artificial intelligence investment is supporting demand even as energy shocks and persistent inflation complicate the outlook for monetary policy. Speaking at the International Monetary Fund and World Bank […]
Emerging Market Stocks Rise As Warsh’s AI Outlook Lifts Sentiment
Emerging market equities advanced on Friday as investors responded to Federal Reserve Chair Kevin Warsh’s positive assessment of artificial intelligence and its potential to support long-term economic growth. The gains followed a period of weakness in global technology shares, with markets also reassessing expectations for US interest rates. The MSCI Emerging Markets Index rose around 1%, recovering some ground as sentiment improved across inter…
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