Fed Chair Kevin Warsh Comments on Rate Hike and Price Stability
US Federal Reserve Chair Kevin Warsh emphasized that the FOMC's decision to raise the policy interest rate by 25 basis points was a correct step toward ensuring price stability.
During a press conference following the Federal Open Market Committee's decision to raise the policy interest rate by 25 basis points, US Federal Reserve Chair Kevin Warsh stated that inflation is too high and the primary focus is price stability.
Economic Strength and Supportive Stance
US Federal Reserve Chair Kevin Warsh stated that the interest rate hike decision was made during a period when the US economy was strengthening.
He conveyed that indicators such as hiring, private sector earnings, and capital investments have pointed in a positive direction in recent months.
Emphasis on Price Stability and Inflation
Warsh expressed that the Fed is in a good position regarding employment, but inflation has remained above the target for more than 5 years.
He noted that inflation data during the summer months did not show a meaningful improvement in underlying trends and that the primary focus is price stability.
Economic Risks and Assessments
Fed Chair Warsh stated that inflation risks continue to trend upward, while risks regarding the labor market are roughly balanced.
He expressed that today's decision reflects the best assessment made in line with the institution's mandate.
Future Policies and Trends
Warsh said that he is not providing forward guidance and will not pre-judge future decisions in advance.
Stating that individual data points can contain misleading fluctuations, he emphasized that what matters is overall trends rather than noisy instantaneous data.