US Market: Fed Chair Warsh offers no signal on October interest-rate decision

Federal Reserve Chair Kevin Warsh on Friday declined to signal whether the US central bank would raise interest rates or keep them unchanged at its October 27-28 policy meeting, saying he does not make decisions before scheduled deliberations.

Speaking at the 2026 IMF-World Bank annual meetings in Bangkok, Warsh said the Fed had made clear its commitment to price stability when it raised rates in September, removing some monetary policy accommodation.

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Warsh's remarks offered little clarity on the Fed's next move as markets largely expect policymakers to hold short-term interest rates steady at the upcoming meeting. He also refrained from indicating the likely direction of monetary policy for the remainder of the year.

Investors will watch the Fed's decision for clues about the US economic outlook and the central bank's approach to balancing inflation control with economic growth.

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Reuters reported that Warsh reiterated the Fed's commitment to maintaining price stability but declined to provide forward guidance on upcoming policy decisions, emphasising that each meeting would be assessed on its own merits.

Uncertainty around the October decision comes as financial markets closely monitor the Fed's policy outlook for signals on borrowing costs, bond yields and the dollar. Any indication of a shift towards tighter monetary policy could influence investor expectations across global financial markets, particularly as central banks assess inflation risks and economic conditions.

Warsh's emphasis on price stability also underscores the importance of incoming economic data in shaping the Fed's decisions. Investors will continue to track inflation readings, employment figures and other indicators for clues about the central bank's assessment of price pressures and the appropriate path for interest rates in the coming months.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times.)