Warsh Signals Steady Fed Outlook As Inflation Heats Up — SkimNews
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- Kevin Warsh said Friday it has largely performed as expected since September's rate hike, hinting little has changed in the Federal Reserve's outlook.
- Warsh's steady signal comes even as the central bank weighs another interest rate increase later this month.
- Inflation has been heating up, creating the backdrop for the Fed's deliberations over whether to tighten further.
- The Federal Reserve is weighing a fresh interest rate increase as price pressures intensify, a move that would add to the September hike's impact on borrowing costs.
Why it matters: A steady-signal message from Warsh alongside inflation heating up leaves the Fed at a crossroads: hold the line or hike again. Consumers and businesses already absorbing the September rate increase face the prospect of further borrowing costs within weeks if the Fed pulls the trigger later this month.
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