Fed chair Warsh says price stability is key but deflects on rate signals

Federal Reserve Chairman Kevin Warsh said Friday he won’t prejudge what the U.S. central bank will do about interest rates at its upcoming meetings in October and December. The Fed increased its key interest rate by a quarter-point to about 3.9% in September, its first increase in three years, and stubbornly elevated U.S. inflation will likely lead it to hike that rate again in coming months to slow spending and help cool price pressures. But Warsh offered no fresh signals during a “fireside chat” with International Monetary Fund Managing Director Kristalina Georgieva at a meeting of financial leaders in Bangkok. “At the Federal Reserve, 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.” The Fed’s September rate hike defied U.S. President Donald Trump’s repeated calls for the Fed to cut rates. The president criticized the Fed’s rate-setting committee, though he still expressed support for Warsh, whom he appointed earlier this year. The global surge in prices is a key concer…

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