Fed Chair Kevin Warsh opposes signaling policy decisions in advance

Federal Reserve Chair Kevin Warsh said at a press conference immediately after the meeting that he does not support signaling policy decisions in advance. Citing renewed increases in energy and related prices, he explained the background to discussions focused on price stability.

FactSnap

October 29, 2026 at 10:00 AM

Federal Reserve Chair Kevin Warsh said at a press conference immediately after the meeting that he does not support signaling policy decisions in advance or prejudging meetings. He said lowering inflation is the Fed's responsibility and explained that discussions over the past two days had focused primarily on price stability. Citing renewed increases in energy and related prices in recent weeks, he emphasized that the Fed's task is to prevent relative price changes in some sectors from spreading across the economy.

The U.S. Federal Reserve (Fed) held its annual policy rate at 3.75–4.00% at its regular Federal Open Market Committee (FOMC) meeting on the 28th, local time. It kept rates unchanged after raising them last month for the first time in three years and two months, and provided no clear signal about a December rate increase.

The rate hold was announced less than a week before the U.S. midterm elections on November 3. Asked whether the midterm elections had influenced the decision to hold rates, Chair Warsh replied that politics had played no role in the decision.

The Federal Reserve, the U.S. central bank, announced on the 28th, local time, that it had decided to hold its benchmark annual interest rate at 3.75–4.00%. The decision came at a two-day Federal Open Market Committee (FOMC) meeting that began the previous day.

The Fed raised its benchmark rate by 0.25 percentage point last month. After holding rates steady five consecutive times this year, it shifted toward monetary tightening last month with its first increase in three years and two months.

The Fed said the vote on the decision to hold rates was 10–2. Fed Governor Lisa Cook and Cleveland Federal Reserve Bank President Beth Hammack dissented, advocating a 0.25-percentage-point increase.

The Fed assessed in its statement that economic activity was expanding at a strong pace, despite continued high uncertainty arising from geopolitical conditions and other factors. It described U.S. spending, productivity growth and capital investment as solid, with employment growth keeping pace with labor force growth and little change in the unemployment rate.

On prices, the Fed assessed inflation as still elevated. Its stated inflation target is 2%.

The hold left the gap between South Korea's 3.00% benchmark rate and the U.S. benchmark rate at 1.00 percentage point, measured against the upper end of the U.S. range.

Fed announces decision to hold benchmark rate at 3.75–4.00%

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