Key facts
- Warsh suggested he wouldn't push to raise borrowing rates this month.
- Persistent inflation may force the Fed's hand.
- The Fed raised the fed funds rate by 25 basis points to 3.75%-4% in September 2026.
- J.P. Morgan Global Research expects one more hike at the December meeting.
- Warsh mandated five task forces to review the Fed's policymaking process, with findings expected by year-end 2026.
Federal Reserve Chair Kevin Warsh offered no clear signal on the central bank's October interest rate decision on October 14, 2026, despite persistent inflation concerns. Speaking at an IMF summit in Bangkok, Warsh stated he would not prejudge meetings but acknowledged that price pressures remained uncomfortably elevated globally. The Fed had previously raised the fed funds rate by 25 basis points to 3.75%-4% in September, a move in line with market expectations and supported by all 19 policymakers. J.P. Morgan Global Research anticipates one additional hike by year-end, consistent with FOMC projections, citing core PCE inflation above the Fed's 2% target. Warsh also defended the September hike, citing economic resilience amid geopolitical conflicts and noted the Fed's dual mandate of low inflation and low unemployment.