Fed Chair Warsh Vows Price Stability but Keeps Rate Path Quiet, Cooling Bets on an October Hike

BANGKOK, Oct. 16 (TodayViralUSA) — Federal Reserve Chair Kevin Warsh pledged on Friday that the central bank would deliver price stability but declined to say whether another interest-rate increase is coming, remarks that led investors to scale back bets on a hike at the Fed’s meeting later this month.

Speaking in a moderated conversation with International Monetary Fund Managing Director Kristalina Georgieva at the IMF and World Bank annual meetings in Bangkok, Warsh steered clear of any outlook for the U.S. economy or policy.

“We made very clear that we would deliver price stability, and we removed a dose of accommodation about a month ago,” Warsh said. “I don’t prejudge meetings. I don’t believe in saying now what I might do at the meetings that we have in the balance of this year.”

Markets lean toward a hold

Before he spoke, traders priced roughly a 27% chance of a rate increase at the Fed’s Oct. 27–28 meeting; afterward, the odds fell below 15%, Bloomberg reported. S&P 500 futures erased a loss of as much as 0.6% to trade 0.2% higher, and the dollar edged lower.

Markets still see a strong chance of a move before year-end. Euronews, cited by Quartz, said traders put the likelihood of an increase in December at roughly 90%, and minutes from the Fed’s September meeting showed most officials expected one more hike in 2026.

Inflation back in focus

The Fed raised its benchmark rate by a quarter percentage point on Sept. 16, to a range of 3.75% to 4%, in a unanimous 12-0 vote. It was the first increase since July 2023 and Warsh’s first hike as chair.

Consumer prices rose 3.7% in the 12 months through September, up from 3.4% in August, driven largely by a surge in gasoline prices. Core inflation, which excludes food and energy, was 2.6%. Several Fed officials have said in recent weeks that more increases may be needed but that they have time to watch the data.

Warsh, who has withheld his own rate projections from the Fed’s quarterly “dot plot,” has generally avoided signaling policy in speeches and interviews. Friday’s appearance was among his last before the Fed’s pre-meeting quiet period begins Saturday, which bars officials from discussing policy until the decision is announced. His next public comments are expected at the press conference after the October meeting.