Federal Reserve Chairman Kevin Warsh declined to endorse or push back on colleagues' recent signals that officials are in no rush to raise interest rates this month, saying the central bank was no longer in the business of previewing its decisions.
"I don't prejudge meetings. I don't believe in saying now what I might do at the meetings we have," Warsh said. "It's a new chapter at the Fed, and we're not in that business anymore."
Warsh made the comments Friday morning local time in Bangkok in a moderated conversation at the meetings of the International Monetary Fund and shortly before Fed officials were set to enter their quiet period ahead of the Oct. 27-28 meeting.
The Fed raised rates by a quarter percentage point last month, to a range between 3.75% and 4%, in a unanimous vote. It was the first increase in three years, and most of Warsh's colleagues penciled in at least one more rate increase this year in projections released at the meeting.
Warsh has said that he wants investors to focus on the economy rather than hints from Fed officials about their next moves, but two weeks ago, top officials who consult with Warsh on policy strategy signaled the central bank was in no hurry to raise rates again this month. Odds of an October rate increase in futures markets tumbled shortly thereafter.
September inflation data released this week, however, was firmer than expected. Core consumer prices, which exclude volatile food and energy items, rose 0.33% in September, the second straight firm monthly reading. A separate measure of producer prices released Thursday was also strong.
The Fed's October meeting will fall less than a week before the midterm elections, which means any decision to raise rates or hold them steady could draw more political scrutiny than normal.
Comments