Harker Says Rates Aren’t Restrictive as Fed Holds Steady Amid Warsh Watch

WHO:

Bloomberg Markets - Kevin Warsh said there were no firm conclusions about monetary policy.

Bloomberg Markets - Patrick Harker, former president of the Philadelphia Federal Reserve, said he expects the Fed to hold interest rates steady.

CNBC - Kevin Warsh is chairman of the U.S. Federal Reserve and is expected to address the outlook at a post-meeting news conference.

CNBC - Potential dissenters from a decision to hold rates include Cleveland Fed President Beth Hammack, Dallas Fed President Lorie Logan, and Minneapolis Fed President Neel Kashkari.

CNBC - The Federal Open Market Committee (FOMC) sets interest rates; the CME Group provides the FedWatch tool cited in the article.

WHAT:

Yahoo Finance - Warsh said he disagreed with the view that interest-rate increases would have no effect on artificial-intelligence investment, saying, “Interest rates get in the cracks. Interest rates affect directly or indirectly almost everything.”

Yahoo Finance - Warsh said interest rates matter to investment in new technology and that they are not “divorced from the rest of the economy.”

Yahoo Finance - Warsh cited wider credit spreads for some assets since the September rate increase and said financial conditions had tightened as investors differentiated between technology firms and other companies.

Yahoo Finance - Bill Ackman questioned whether higher rates would reduce AI demand and investment, arguing that demand for intelligence and energy and the potential return from winning the race for superintelligence could remain unaffected.

CNBC - JPMorgan Wealth Management chief investment strategist Phil Camporeale said the Fed preferred to wait for more information on the appropriate level of rates amid uncertainty from geopolitical developments.

CNBC - Principal Asset Management chief global strategist Seema Shah said the firm expected a rate hike in December and another in early 2027.

CNBC - Jefferies chief U.S. economist Thomas Simons said Warsh’s communication was neither particularly dovish nor hawkish and that markets might need more time to align with his communication style.

Bloomberg Markets - Aberdeen Investments Senior Research Economist Sree Kochugovindan said two dissents showed Fed independence; the Fed gave no clear signal about rates at its next meeting.

Bloomberg Markets - The Federal Open Market Committee voted 10-2 to leave its benchmark federal funds rate unchanged, in a range of 3.75% to 4%.

IJR - The Fed will turn one of its eight annual meetings in 2027 into a strategy-focused discussion without an interest-rate decision, then hold two such meetings in 2028.

IJR - The strategy-focused meetings are intended to give policymakers more time to consider longer-term economic issues.

Bloomberg Markets - Warsh said inflation remained too high and policymakers would “deliver price stability.”

NBC News - Warsh said the Fed plans to eliminate some meetings devoted to setting interest rates over the next couple of years.

Bloomberg Markets - Warsh said monetary “medicine” was starting to work, during a news conference after the Fed decided to leave rates unchanged.

Bloomberg Markets - Harker said, “I don’t think that’s the correct decision in my mind, but that’s what you’re gonna get,” referring to an expected decision to hold rates steady.

Bloomberg Markets - Harker said the Fed will have to signal that more tightening is probably going to be warranted.

CNBC - Markets priced in less than a 10% chance that the FOMC would raise rates by another quarter-percentage point after its September increase.

CNBC - If the Fed holds, the benchmark rate would remain in a range of 3.75% to 4%.

CNBC - Traders expected a rate increase at the Fed’s next meeting in December, following an October pause.

CNBC - The meeting was not scheduled to include an updated “dot plot” or Summary of Economic Projections.

CNBC - Hammack, Logan, and Kashkari each voted against holding rates in July.

CNBC - The article described inflation as tracking well above the Fed’s target.

WHERE:

CNBC - The FOMC meeting news conference was associated with Washington, D.C.

WHY:

Yahoo Finance - Warsh said interest rates could affect AI investment because they influence economic activity broadly, including financial conditions and credit spreads.

CNBC - The rate decision was expected to attract limited suspense because markets anticipated that the Fed would keep rates unchanged.

CNBC - Investors were expected to focus on Warsh’s remarks because the meeting would not provide updated rate projections.

CNBC - The Fed decision came shortly before a pivotal midterm election over control of Congress; the article said Fed officials maintain that political considerations do not affect their decisions.

HOW:

IJR - The meeting changes will reduce opportunities for policymakers to adjust interest rates between scheduled meetings.

CNBC - Market expectations for the likelihood of a rate increase were measured using the CME Group’s FedWatch tool.

CNBC - Warsh was expected to provide clues about monetary policy at a post-meeting news conference.

(UPDATED October 29, 2026 09:59 UTC)

The Federal Reserve voted 10 to 2 to keep its benchmark interest rate unchanged, in a range of 3.75% to 4%, as policymakers weighed persistent inflation and economic uncertainty. Chairman Kevin Warsh said there were no firm conclusions on monetary policy, that inflation remained too high, and that interest rates can affect investment in artificial intelligence by influencing the broader economy and credit conditions. The Fed also plans to use some meetings in 2027 and 2028 for longer-term strategy discussions rather than rate decisions, giving policymakers more time to consider economic issues but fewer chances to adjust rates between scheduled meetings.

(UPDATED October 29, 2026 08:03 UTC)

The Federal Open Market Committee voted 10 to 2 to leave its benchmark interest rate unchanged, keeping it in a range of 3.75% to 4%. At a news conference, Fed Chair Kevin Warsh said inflation remained too high and that monetary policy was starting to work, but offered no firm conclusions about the rate outlook; two policymakers dissented. The Fed also plans to devote some meetings in 2027 and 2028 to longer-term strategy without making interest-rate decisions, giving policymakers more time to consider broader economic issues.

(UPDATED October 28, 2026 23:59 UTC)

The Federal Reserve voted 10 to 2 to keep its benchmark interest rate unchanged in a range of 3.75% to 4%, while Chair Kevin Warsh said there were no firm conclusions about monetary policy and inflation remained too high. Warsh said the Fed’s policy was starting to work and pledged to deliver price stability, as investors watched his remarks for clues without updated rate projections. The Fed plans to replace one rate-setting meeting with a strategy-focused discussion in 2027 and hold two such meetings in 2028, giving policymakers more time to consider longer-term economic issues.

(UPDATED October 28, 2026 23:00 UTC)

The Federal Reserve left interest rates unchanged, and Chairman Kevin Warsh said there were no firm conclusions about monetary policy, while inflation remained too high and the Fed would work to deliver price stability. The Fed plans to turn one meeting in 2027 and two in 2028 into strategy discussions without rate decisions, giving policymakers more time to consider longer-term economic issues but fewer chances to adjust rates between meetings. Philadelphia Fed President Patrick Harker said he expects rates to stay steady and believes further tightening may be needed.

(UPDATED October 28, 2026 21:00 UTC)

The Federal Reserve left interest rates unchanged, with Chairman Kevin Warsh saying inflation remained too high, monetary policy was starting to work and policymakers would deliver price stability. Former Philadelphia Fed President Patrick Harker said he expected the decision but believed more tightening would be needed, while Cleveland Fed President Beth Hammack, Dallas Fed President Lorie Logan and Minneapolis Fed President Neel Kashkari were potential dissenters. Warsh said there were no firm conclusions about monetary policy and that the Fed planned to eliminate some rate-setting meetings over the next couple of years.

(UPDATED October 28, 2026 20:02 UTC)

The Federal Reserve held interest rates steady, leaving its benchmark rate in a range of 3.75% to 4%, and Chairman Kevin Warsh said monetary “medicine” was starting to work. Warsh said there were no firm conclusions about monetary policy, while investors focused on his remarks because the meeting included no updated rate projections. Former Philadelphia Fed President Patrick Harker said the Fed would likely need to signal that further tightening could be warranted, as inflation remained well above the central bank’s target.

(UPDATED October 28, 2026 19:07 UTC)

The Federal Reserve was expected to hold interest rates steady, leaving its benchmark rate at 3.75% to 4%, while markets saw less than a 10% chance of another quarter-point increase. Former Philadelphia Fed president Patrick Harker said a pause was not the right decision and argued the Fed should signal that further tightening may be needed, with inflation still above its target. Investors were expected to focus on Chair Kevin Warsh’s post-meeting remarks for clues about policy, while Beth Hammack, Lorie Logan, and Neel Kashkari were seen as potential dissenters.