Kevin Warsh said the Federal Reserve would deliver price stability while refusing to pre-judge forthcoming policy meetings, adding he would make judgements at the October and December meetings and would not signal what he might do in meetings for the rest of 2026. He said the post-September FOMC backdrop had broadly matched officials’ expectations, with the next meetings set to crystallise what is happening to output, employment and inflation. Warsh described structural growth and an investment surge, said the Fed must consider financial stability risks and negative tail-side risks, and argued monetary policy spillovers run both ways globally as “synchronous” tightening leaves no free riders.
Monetary Policy And Global Spillovers
Kevin Warsh said the Federal Reserve would deliver price stability while refusing to pre-judge forthcoming policy meetings, adding he would make judgements at the October and December meetings and would not signal what he might do in meetings for the rest of 2026. He said the post-September FOMC backdrop had broadly matched officials’ expectations, with the next meetings set to crystallise what is happening to output, employment and inflation. Warsh described structural growth and an investment surge, said the Fed must consider financial stability risks and negative tail-side risks, and argued monetary policy spillovers run both ways globally as “synchronous” tightening leaves no free riders.
Artificial Intelligence, The Real Economy, And Market Reactions
He said AI is likely to hit demand before any supply shock, could improve central banks’ confidence in data and policy, and may reshape the real economy even as near-term employment effects remain uncertain. The Fed will hold a field hearing on AI in the San Francisco Bay Area on November 16, while internal task forces work on intellectual capital for the FOMC. In markets, the US Dollar Index (DXY) was down 0.22% at 101.82, while the FXS Speechtracker scored the remarks 5.6/10 versus a 6.1/10 baseline; the FXS Fed Sentiment Index was unchanged at 127.51.
