Warsh Offers No Signal on Fed’s October Rate Decision

Federal Reserve Chair Kevin Warsh declined to indicate whether he would support raising interest rates at the central bank’s next meeting, saying he does not prejudge policy decisions. Speaking October 16 at the IMF-World Bank meetings in Bangkok, he offered an upbeat assessment of the U.S. economy but left the rate decision open. The Federal Open Market Committee is scheduled to meet October 27-28. Market expectations, as described in reports, favored holding rates steady, while officials have said more tightening may be needed and have emphasized the need to assess additional economic data. Warsh did not say whether he supported a further increase or a pause. At the meeting, Warsh said the Federal Reserve had removed “a dose of accommodation” in September. The central bank raised its benchmark rate by a quarter point, to a range of 3.75% to 4.00%, according to reporting on the decision. Warsh said the Fed had made clear it would pursue price stability, but gave no indication of what policymakers might do at the remaining meetings of 2026. Warsh also described the U.S. economy as having “plenty of tailwinds,” citing resilience and a broadening surge in investment that he said...