Business · Economy · 18 mins ago
Fed chair Warsh avoids signaling whether rates will rise again
Federal Reserve Chair Kevin Warsh gave no hint about the next rate decision during a meeting in Bangkok.
The Fed raised its key rate by a quarter-point to about 3.9% in September, its first increase in three years.
High inflation is keeping the possibility of another increase in view, and most Fed officials expect one may be needed this year.
Warsh said the Fed would deliver price stability but would not prejudge its October and December meetings.
Another increase could raise borrowing costs for mortgages, car loans and credit cards over time.
Warsh also said investment in artificial intelligence is one factor behind higher inflation, while describing the technology as likely to benefit the economy over time.
The Fed's AI task force is due to meet on November 16, but Warsh did not say what the central bank will do about rates next.
Federal Reserve Chair Kevin Warsh said he would not signal what the Fed will do at its October and December meetings.
Warsh said the central bank was committed to price stability after raising its key rate by a quarter-point to about 3.9% in September.
Most Fed officials expect another rate increase will likely be needed this year, according to minutes from the latest meeting.
Warsh said investment linked to artificial intelligence is one factor behind higher inflation.
Gold faced pressure as rising U.S. inflation raised expectations that interest rates could stay high, while investors watched Warsh’s remarks for clues.
- Who
- Federal Reserve Chair Kevin Warsh, speaking with IMF Managing Director Kristalina Georgieva.
- What
- Warsh said he would not prejudge upcoming interest-rate decisions and offered no fresh signals.
- When
- Friday, October 16, 2026.
- Where
- Bangkok, at a meeting of financial leaders.
- Why
- Warsh said the Fed was committed to price stability; investors were watching for clues on rates amid elevated inflation.
Donald Trump
Most Fed officials
Interest rates
Donald Trump
Trump repeatedly called for the Fed to cut rates.
Most Fed officials
Minutes from the latest meeting indicate most Fed officials expect another rate increase will likely be needed this year.
The Fed raised its key interest rate by a quarter-point to about 3.9%, its first increase in three years.
U.S. consumer inflation data showed prices rose 0.6% month over month in September and annual inflation reached 3.7%.
U.S. producer prices rose 1.3% in September, their strongest monthly increase since March 2022; gold also recovered some losses as the dollar weakened and Treasury yields fell.
Warsh spoke with IMF Managing Director Kristalina Georgieva in Bangkok and declined to signal future rate decisions.
The Fed’s task force on issues related to artificial intelligence is scheduled to meet.
- September Fed rate
- Raised by a quarter-point to about 3.9%
- U.S. annual consumer inflation
- 3.7% in September, up from 3.4% the previous month
- September producer prices
- Rose 1.3% month over month
- Warsh’s Bangkok conversation
- With IMF Managing Director Kristalina Georgieva
- Fed AI task force meeting
- November 16, 2026
5 sources
Fed chair Warsh says U.S. price stability is key but shies away from signals about rates
When Will the Fed Move on Rates?
Here are the key things Fed Chairman Kevin Warsh said — and didn’t say — while Americans were sleeping Thursday night
Fed chair Warsh pledges price stability but avoids hints about rates
Altında yükseliş bitti mi? Fed'den gelecek mesaj her şeyi değiştirebilir
What people are saying
I don’t prejudge meetings. I don’t believe in saying now what I might do at the meetings that we have in the balance of this year.
At the Federal Reserve, we made very clear that we would deliver price stability, and we removed a dose of accommodation about a month ago.
I’d say the advent of this new technology is probably the most consequential change to the U.S. and the global economy in my lifetime to this point.