FED Chairman Kevin Warsh Speaks – Critical Remarks Following the Interest Rate Decision – LIVE

The statement released after the interest rate decision noted that the US economy was growing at a strong pace, consumer spending remained resilient, and capital investment was robust. However, it also emphasized that inflation remained high.

Federal Reserve Chairman Kevin Warsh’s press conference is being closely watched, particularly for its implications on the inflation outlook, the current state of the US economy, and the interest rate policy to be followed in upcoming meetings.

Warsh’s statements are significant for global financial markets, particularly for Bitcoin (BTC) and other cryptocurrencies.

Statements by FED Chairman Kevin Warsh

• Economic activity is growing at a strong pace.
• Domestic demand has maintained its resilience.
• Productivity is high and capital investment remains strong.
• The Committee believes that further information will help determine the appropriate policy stance.
• The Committee is closely monitoring the external environment and the situation has not become more relaxed.
• The committee will ensure price stability.
• Third-quarter GDP growth could be above 3%.
• The discussion focused primarily on inflation.
• Credit conditions have tightened.
• Market participants are being more cautious about capital allocation.
• We do not want to, and cannot, conclude that financial conditions are tight.
• The volatility in the financial markets didn’t surprise me.
• Six policy-making meetings are expected to be held in 2028.
• The Federal Open Market Committee’s meeting schedule will be rearranged starting this fall.
• We believe eight meetings a year is an appropriate number.
• In 2027, there will be no vote on interest rates or the statement at any of the meetings.
• I predict there will be two meetings in 2028 where no interest rate vote will take place.
• We have made it clear that we are ready to act. The information we gather in the coming period will help us determine the direction in which we want to shape our policy.
• The Fed has implemented a “new monetary therapy.” Inflation compensation measures, as measured by inflation swap contracts, are showing a positive trend.
• In the context of global instability, inflation expectations have moved in the right direction.
• I am pleased with these signs.
• We made this decision to assess the current situation and determine whether it will become clearer in the coming period. According to our assessment, the situation will become clearer in the coming period.
• There is no such thing as a “flexible target” for inflation; the price stability target, as measured by PCE, is 2%.
• Interest rates fell as oil prices continued to rise.
• High levels of capital expenditure are no longer limited to just a few areas.
• The impact of the Fed’s (September) interest rate hike on the market was largely in line with expectations.

*This is not investment advice.