Fed chair Warsh says price stability is key but shies away from signals about rates
Warsh reiterated the Fed’s price-stability focus as markets cut odds of an October hike below 15% after his remarks.
- On Friday, Federal Reserve Chairman Kevin Warsh stated in Bangkok that he will not prejudge interest rate decisions for the central bank's upcoming October and December meetings.
- Speaking with International Monetary Fund Managing Director Kristalina Georgieva at the IMF-World Bank Annual Meetings, Warsh observed a "synchronous tightening in monetary policy in most places around the world."
- Stubbornly elevated U.S. inflation hit 3.7% in September, driving the Federal Reserve's recent rate hike to roughly 3.9%, with officials indicating further increases are likely this year.
- While identifying artificial intelligence as a "huge benefit" to the global economy, Warsh acknowledged that the investment surge is contributing to higher inflation pressures.
- To address data lags in assessing inflation trends, Warsh noted that Fed economists may soon utilize new analytical tools to distill information, positioning artificial intelligence as a transformative resource.
78 Articles
78 Articles
The CME Group's Fedwatch gives an 85% probability of interest rates remaining between 3.75% and 4% at the next meeting of the US Federal Reserve (Fed) scheduled for October 28.
On Friday, the boss of the US Federal Reserve (Fed) estimated that the world economy was showing unexpected "resilience" in the face of powerful shocks, at a time when the world's central banks hardened their rates in a "synchronised" way to curb inflationary flight.
Kevin Warsh says US investment surge supports growth, sees AI boosting supply over medium term
Fed’s Warsh hails economic resilience but sees ‘bumpy’ AI road ahead
US Federal Reserve Chairman Kevin Warsh said in Bangkok on Friday that the global economy has proved surprisingly resilient and called AI the most consequential change of his lifetime, but gave no hint on interest rates ahead of the Fed’s meeting this month.
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