Fed's Kevin Warsh speech to be key policy watch window amid rising inflation

Huo Xing Finance reports that on October 15, the September inflation data shattered market expectations that the Fed could afford to wait. Over the past few weeks, several policymakers had suggested the Fed did not need to rush into another rate hike, but the latest data has reignited the possibility of action at the October meeting. Former Fed Chair Kevin Warsh had previously pledged not to guide markets through short-term monetary policy projections. However, following the unexpected rise in inflation, market attention has turned sharply to his speech in Bangkok on Thursday evening Eastern Time (11:30 Beijing time on October 16), where he will engage in a fireside chat with IMF Managing Director Kristalina Georgieva. The Fed will enter a media blackout on Saturday in preparation for its policy meeting on October 27–28. Before then, if the Fed wishes to signal its stance on interest rate decisions, Warsh’s remarks will serve as a critical channel.