Federal Reserve Chairman Kevin Warsh on Friday said that the U.S. economy has “broadly” moved in the direction that the central bank expected during its last meeting in September, when it raised rates for the first time since 2023.
\n\nIn the weeks since, inflation as measured by the consumer price index jumped to 3.7%. For businesses, inflation has hit even harder. That turned investors focus to Warsh’s appearance at the annual meeting of the International Monetary Fund and the World Bank for a signal about whether the Fed would hike rates in October or December.
\n\n“We made very clear we’d deliver price stability,” Warsh said Friday morning in Bangkok (Thursday night ET), a signal of his focus on inflation and that another interest rate hike is likely on the horizon.
\n\nBut Warsh stuck to a familiar tone and refused to give any clear hint about how soon that might come. “We’re not in that business anymore,” he said.
\n\nHowever, Warsh, the head of the world’s most important central bank, spoke at length about one major economic force that is causing prices to rise across the economy.
\n\n“In the United States, we’re having a massive investment surge,” he said, referencing the…
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