"US Federal Reserve Chair Kevin Warsh on Friday in Bangkok refrained from any hints about a possible interest rate hike this month.
Speaking at a meeting held as part of the annual IMF and World Bank gatherings, Warsh stressed that he does not intend to prejudge the decisions of upcoming meetings.
"I don't front-run meetings. I don't believe in talking now about what I might do at the meetings we'll have before the end of the year," he said, reaffirming his stance against the use of forward guidance.
Warsh also noted the "synchronized tightening" of monetary policy by central banks around the world. According to him, regulators acted within their own mandates, but the result was the absence of "free riders."
The Fed chair's speech came amid last month's rate hike to a range of 3,75–4%, the first since 2023. Traders put the probability of a pause at the October meeting at 72,3%.
At the same time, Warsh expressed optimism about artificial intelligence: he believes AI will make economies that use it effectively more productive and wealthier. However, he called the path to this "very bumpy."
Inflationary pressure is being fueled by rising energy costs amid the conflict with Iran and an investment boom in AI, while global government debt is approaching 100% of world GDP.
Markets reacted calmly: futures on the S&P 500 index and the Nasdaq exchange edged higher, while Asian indices and Treasury yields remained stable."
