Fed holds fire as Warsh telegraphs more hikes without saying it

U.S. Federal Reserve Chairman Kevin Warsh holds a press conference, following a two-day meeting of the Federal Open Market Committee (FOMC), at the Federal Reserve in Washington on Wednesday. | REUTERS

By andrew ackerman
Bloomberg

Oct 29, 2026

Federal Reserve Chairman Kevin Warsh on Wednesday left the central bank on track to raise interest rates again this year, even as he stuck to his refusal to offer any explicit guidance on the future path of policy.

Operating within his self-imposed communication boundaries, Warsh used his assessment of a strong economy and warnings over persistent inflation to signal the Fed’s job is not yet done. The message reinforced expectations that officials will raise borrowing costs in December — after holding them steady Wednesday — with the potential for another increase in early 2027. Still, Warsh was careful to leave his options open.

“He was setting up more tightening, but he was also bracketing that it need not be all that much more tightening,” said Vincent Reinhart, chief economist at BNY Investments.

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