Fed Chair Warsh Avoids October Rate Signal

Federal Reserve Chair Kevin Warsh declined to signal whether the central bank will raise or hold interest rates at its upcoming meeting, saying he does not prejudge policy decisions and that the Fed is no longer in the business of previewing them. He said decisions would be made meeting by meeting, with attention to current economic conditions. Warsh reaffirmed that the Fed’s previous rate increase was intended to restore price stability, as above-forecast inflation has fueled speculation about another move. He also emphasized that the Fed’s responsibilities extend beyond monetary policy to areas including bank supervision, payment systems and consumer affairs.