Warsh leaves October Fed decision open, stresses data dependence
The Fed chair declined to preview the next rate decision, while Goldman Sachs economists still expect a December increase.
Key takeaways
- Warsh did not signal whether the Fed will raise rates at its October meeting.
- Goldman Sachs economists expect a pause in October and a final hike in December.
Federal Reserve Chair Kevin Warsh declined to say whether rates will rise at the Oct. 27-28 meeting. The Fed raised its policy rate last month to a range of 3.75% to 4%.
Warsh said he does not prejudge meetings and opposes giving markets advance guidance, arguing investors should interpret economic data. He also described a “synchronous tightening” by central banks in much of the world, with “no free riders.”
Goldman Sachs economists led by Jan Hatzius said Warsh’s comments point to a Fed pause in October. They continue to expect a second and final rate hike in December.
S&P 500 and Nasdaq futures edged higher after the speech, while Asian stock indexes and Treasury yields were largely stable.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
