Fed Chair Warsh in Bangkok: Inflation Still Hot, Won't Prejudge October Meeting

Federal Reserve Chair Kevin Warsh said on Friday during a fireside chat with Managing Director Georgieva on the sidelines of the IMF annual meetings that the Fed "will ensure price stability," but declined to prejudge the decision of the Oct. 27–28 policy meeting, saying he does "not believe in telegraphing intentions for future meetings in advance." Warsh said the September 25-basis-point rate hike to about 3.9% "removed some accommodation." U.S. inflation remains stubborn: September PPI rose 1.3% month-on-month, and August CPI was 3.4%. He also called AI investment "the most important upside force in the global economy," which will force central banks to change how they set interest rates. Warsh succeeded Powell on May 22 this year to become the 17th Fed Chair.