Fed's Warsh Signals No October Rate Guidance, Points to December as Decision Inflection

Federal Reserve official Christopher Warsh told markets Thursday he will not hint at the Fed's October policy stance and cautioned against assuming any particular trajectory through the rest of 2026. Warsh flagged October and December as clarifying moments for policy, suggesting the central bank remains data-dependent and noncommittal.

Warsh characterized AI as a potential positive supply shock for growth but warned the transition will be "very bumpy," underscoring the Fed's uncertainty over inflation dynamics and labor market resilience heading into year-end.

#economy #derivatives #rates