Warsh leaves Fed rate decision uncertain

Speaking on the sidelines of the IMF and World Bank annual meetings in Bangkok, Warsh said he did not want to signal interest rate decisions in advance, emphasizing that markets should assess economic data independently. Stressing that the Fed has moved away from forward guidance, Warsh made no commitments regarding policy decisions at the remaining meetings of the year.

Warsh noted that central banks worldwide are undergoing a simultaneous monetary tightening cycle and said artificial intelligence would bring significant changes to economies. He explained that the technology could boost productivity and economic growth, although its short-term impact on employment remains uncertain. Following his remarks, Asian equity markets and US Treasury yields remained largely unchanged, while investors continued to expect the Fed to keep interest rates steady at its October meeting.