Warsh Won’t Prejudge Rate Decisions as Americans Face Another Painful Blow to Mortgages and Credit Cards
No advance rate signals
Warsh said Friday that he would not prejudge the Federal Reserve’s upcoming decisions in October and December. He spoke during a financial summit in Bangkok with International Monetary Fund Managing Director Kristalina Georgieva.
Warsh said the Fed had made clear its commitment to price stability and had withdrawn some support about a month earlier. He said he did not believe in announcing beforehand what he might do at future meetings.
September move drew criticism
The September rate hike ran counter to President Donald Trump’s demands for lower rates. Trump criticized the committee while continuing to support Warsh, whom he appointed earlier this year. The article’s headline raises the prospect of pressure on mortgages and credit cards, but Warsh gave no new indication of the Fed’s next move.
Inflation and AI in focus
Global inflation remains a major concern for central bankers meeting in Thailand. Warsh identified rising investment in artificial intelligence as an important inflation driver and said the Fed’s AI task force would meet Nov. 16.
Warsh said he expects AI to bring a “huge benefit” to global growth over the long term. He also said the technology could help Fed economists working with delayed data.
Key points
- Warsh declined to preview interest rate decisions scheduled for October and December.
- He spoke in Bangkok with IMF Managing Director Kristalina Georgieva.
- The September rate hike opposed Trump’s calls for lower rates.
- Warsh pointed to AI investment as an inflation factor and a potential long-term growth benefit.