Warsh offers no October rate hint, stressing price stability and AI risks
Speaking with IMF chief Kristalina Georgieva in Bangkok, Warsh declined to preview his stance, so traders are unsure whether the Fed will hike or hold on October 27-28. He also said AI is the biggest change of his lifetime.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
This story is no longer being updated. It reflects reporting up to .
What happened
Federal Reserve Chair Kevin Warsh spoke in Bangkok during the IMF and World Bank annual meetings and would not signal whether the Fed will raise or hold short-term rates at its October 27-28 meeting. He said the global economy has shown unexpected resilience, called AI the most consequential change of his lifetime, and reaffirmed the central bank's commitment to price stability. Markets widely expect a hold, and the latest remarks left that outcome uncertain.
Why it matters
The dollar weakened after Warsh's remarks.
Timeline
- Oct 15, 11:57 PM ET: Warsh declined to hint at how the Fed will act on rates at its October 27-28 meeting.
- Oct 16, 1:25 AM ET: The dollar weakened after Warsh declined to hint at an October rate rise, following CPI data that raised bets on back-to-back hikes.
- Oct 16, 11:38 AM ET: Analysts said investors expect the Fed to hold in October, but Warsh's stance on communications and inflation left the decision uncertain.
Coverage
- Key takeaways from Fed Chair Kevin Warsh’s International Monetary Fund chat (baltimoresun.com)
- Analysis: Everyone expects the Fed to hold rates in October. Kevin Warsh could surprise us all (CNBC)
- What's next for interest rates? Fed Chair Warsh wants price stability (USA Today)
- Fed chief Warsh: economy robust, but don't ask me about rates (Yahoo News)
- Dollar weakens as Fed chair Kevin Warsh declines to hint at October rate rise (Financial Times)
- Not convinced Fed needs to hike: Citi's Nathan Sheets (CNBC)
- Fed's Warsh gives no hint on October policy decision (News & Observer)
- Fed chair to join IMF’s “Managing Director’s Fireside Chat with Federal Reserve Chairman Kevin Warsh” in Bangkok at 10.30am on October 16 (nationthailand.com)
- Warsh links AI boom to inflation as Fed weighs hike
- Warsh stays silent on rate path as Fed meeting nears
- Warsh offers no October rate signal as Fed faces hike debate
More from Business
- Musk pledges SpaceX stock for every American child next year
- Small businesses sue to halt Trump's tariffs on Canadian imports
- Houthi attacks force Saudi Arabia to postpone investor conference
- Bank of America keeps October rate hike call despite markets
- Connecticut man admits losing $1.16M of investor crypto funds
- AI stock selloff keeps markets jittery as CoreWeave debt worries spread