Warsh stays silent on rate path as Fed meeting nears
Fed Chair Kevin Warsh, speaking at the IMF-World Bank meetings in Bangkok, backed price stability but gave no hints on future rate moves. Analysts say the October 28 decision is uncertain, leaving markets without a clear signal.
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This story is no longer being updated.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
U.S. Federal Reserve Chairman Kevin Warsh, speaking at the IMF-World Bank meetings in Bangkok, reaffirmed the central bank's commitment to price stability while declining to hint at future interest rate moves. Later commentary from market analysts said the decision remains uncertain, with some arguing markets are pricing in too many rate hikes while others expect a hike to be a closer call.
Why it matters
Investors have been trying to read the Fed's next move ahead of its October 28 rate decision. Warsh's refusal to give guidance leaves markets without a clear signal.
Timeline
- Oct 16, 2:51 AM ET: Warsh said he would not prejudge what the Fed will do about interest rates at its upcoming meetings, while stressing that price stability is key.
- Oct 16, 9:51 AM ET: Warsh recommitted to price stability ahead of the central bank's Oct. 28 interest rate decision, and acknowledged persistent inflation was weighing on the economy.
- Oct 16, 11:38 AM ET: CNBC analysis said investors expected the Fed to pause rate hikes in October, but that Warsh's rejection of traditional communications left the decision uncertain.
- Oct 16, 5:36 PM ET: Commentators debated inflation data and rising import prices after Warsh rejected forward guidance on rates.
- Oct 17, 7:00 AM ET: MarketWatch wrote that this month's Fed rate decision is a closer call than markets think, weighing arguments against a rate hike.
Coverage
- Probability of more hikes should be higher, says FedWatch's Ben Emons (CNBC)
- The stock market is pricing in ‘too many rate hikes’ (Monica L. Correa)
- Market pricing in too many rate hikes, says Allianz' Mohamed El-Erian (CNBC)
- Warsh links AI boom to inflation as Fed weighs hike
- Warsh offers no October rate hint, stressing price stability and AI risks
- 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