Warsh Offers No Rate Signal Ahead of Fed’s October Meeting
The Fed chair said policy decisions will depend on economic data, while describing AI as a major but uncertain economic shift.
Key takeaways
- Warsh declined to signal what the Fed will do at its October meeting.
- He said economic data should guide assessments of future policy.
- Warsh described AI as a major economic transformation but said near-term job effects remain uncertain.
Kevin Warsh gave no indication of whether the Federal Reserve will raise interest rates at its October meeting, scheduled for Oct. 27-28. Speaking at the IMF and World Bank annual meetings in Bangkok, he said he would not prejudge the decision.
Warsh said markets should assess economic data and reiterated his opposition to signaling future policy moves in advance. Bloomberg HT reported that he described the approach as a new era for the Fed.
According to Ekonomim, Warsh said the Fed raised rates at its September meeting to support price stability. He said officials would reassess the economic outlook at meetings in October and December, and described investment as rising strongly in a period of structural US growth.
Bloomberg HT reported that Warsh also said central banks around the world were tightening policy at the same time, with no country exempt from the process. Asian equities and US Treasury yields were broadly little changed after his remarks, the outlet reported.
Warsh’s view of AI
Warsh called artificial intelligence potentially the most important transformation for the US and global economy in his lifetime. He said economies that use it effectively could become more productive and wealthier, but warned that the transition may be difficult and its near-term effects on jobs remain uncertain.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
