Fed chair Warsh says price stability is key but shies away from signals about rates
Summary
Federal Reserve Chairman Kevin Warsh said he will not predict changes to U.S. interest rates in the upcoming Fed meetings in October and December. The Fed recently raised rates to about 3.9% to help reduce high inflation but Warsh did not give new clues about future moves.Key Facts
- The Federal Reserve raised its key interest rate by 0.25 percentage points in September to about 3.9%.
- This was the first interest rate increase in three years.
- U.S. inflation remains high, which may cause more rate hikes soon.
- Higher interest rates can slow down spending to reduce inflation.
- Warsh spoke at a financial leaders’ meeting in Bangkok with IMF Managing Director Kristalina Georgieva.
- He did not give new guidance on what the Fed will do at October and December meetings.
- The Fed’s rate decisions affect borrowing costs for consumers and businesses.
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