Warsh Emphasizes Price Stability Amid Uncertainty on Rates

WHO:

AP - Federal Reserve Chairman Kevin Warsh

AP - International Monetary Fund Managing Director Kristalina Georgieva

AP - U.S. President Donald Trump

WHAT:

AP - Warsh stated he will not prejudge the Federal Reserve's decisions on interest rates at upcoming meetings.

AP - The Federal Reserve increased its key interest rate by a quarter-point to about 3.9% in September.

AP - Warsh indicated that another interest rate increase is likely needed this year.

AP - Warsh mentioned that the surge in investment driven by artificial intelligence is contributing to higher inflation.

AP - Warsh's task force on issues related to AI will meet on Nov. 16.

WHERE:

AP - The meeting took place in Bangkok.

WHEN:

AP - The Federal Reserve's next meetings are scheduled for October and December.

AP - The AI task force meeting is set for Nov. 16.

WHY:

AP - Warsh emphasized the importance of price stability amid elevated U.S. inflation.

AP - The global surge in prices is a key concern for central bankers and financial leaders.

HOW:

AP - Warsh described the use of new analytical tools and AI to better understand inflation trends, contrasting it with traditional data analysis methods.

(UPDATED October 16, 2026 18:01 UTC)

Federal Reserve Chairman Kevin Warsh announced that he will not prejudge the central bank's decisions on interest rates during upcoming meetings, emphasizing the need for price stability amid rising inflation. He noted that the Federal Reserve recently raised its key interest rate by a quarter-point to about 3.9% and indicated that another increase is likely necessary this year, partly due to the surge in investment driven by artificial intelligence. Warsh's task force focused on AI will convene on November 16 to discuss these pressing issues and the use of new analytical tools to better understand inflation trends.