Federal Reserve chair declines to signal interest rate decisions at IMF meeting

Federal Reserve Chair Kevin Warsh refused to give any hints about the Fed's next interest rate decision at an IMF meeting in Bangkok on October 16. He said he does not preview future policy decisions or prejudge upcoming meetings. Markets had expected the Fed to keep rates steady at its October 27-28 meeting, but Warsh gave investors no confirmation. He noted that the Fed raised rates in September to control inflation and reduce money flowing through the financial system. Warsh also spoke about financial innovation, saying it could bring economic benefits, though the path there would be difficult. His silence on future rates left investors without the guidance that central banks often provide to help markets plan ahead.