Warsh says Fed will deliver price stability, gives no rate hint
Fed Chair Kevin Warsh said Friday in Bangkok that the Fed had made clear it would deliver price stability. But he gave no hint on when it might raise rates again, NBC News reported. He called the AI investment surge probably the most important upside force in the world economy.
Federal Reserve Chair Kevin Warsh signaled Friday that the central bank remains focused on inflation, but he gave no clear hint about when it might raise interest rates again, NBC News reported.
"We made very clear we'd deliver price stability," Warsh said Friday morning in Bangkok, which was Thursday night ET, NBC reported. On timing, he said, "We're not in that business anymore."
Warsh spoke at an event hosted by IMF chief Kristalina Georgieva at the IMF-World Bank Annual Meetings, AFP reported. "Almost everywhere in the global economy (is) showing resilience I'm not sure I would have predicted five or six months ago," he said.
Much of the talk centered on artificial intelligence. "In the United States, we're having a massive investment surge," Warsh said, NBC reported. "It's probably the most important thing that's happening in the global economy on the upside." He said he takes AI's effects soberly, including short-term inflation from demand and an expected positive supply-side shock in the long term, AFP reported. "The path from where we are to there is likely to be a very bumpy one," he said, according to both outlets.
Warsh said a Fed task force of outside experts studying AI's impact on the labor market would hold a public hearing in November, NBC reported.
Inflation as measured by the consumer price index jumped to 3.7%, NBC reported. The Fed raised rates in September for the first time in three years, AFP said. Markets expect it to hold this month before a second 25-basis-point hike in December, according to AFP.
His comments are the last from any Fed official before a "blackout" period that starts Saturday, NBC said. It lasts through the next rate meeting, set for Oct. 27 and 28.
Warsh also said he heard "resolve from my colleagues around the world to deliver price stability," AFP reported.
What we know: Warsh stressed price stability and AI's role but gave no rate signal.
What we don't: Whether the Fed will raise rates at its Oct. 27-28 meeting.
Where outlets agree NBC News and AFP both report that Warsh stressed price stability and AI's economic impact in Bangkok while declining to signal the Fed's next rate move.
Where they differ The outlets cited here report the same key facts so far.