Fed Chair Kevin Warsh Holds Press Conference After Rates Held at 3.75%–4.00%

Federal Reserve Chair Kevin Warsh took questions at a press conference at 9:30 p.m. Turkish time on Oct. 28, after the central bank announced its latest rate decision. The FOMC left the policy rate unchanged at 3.75%–4.00%, as expected. The 10–2 vote drew attention: Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, arguing for a 25-basis-point increase. The post-meeting statement said the U.S. economy is growing at a strong pace, consumer spending remains resilient and capital investment is robust, while inflation remains high. Markets are focused on the remarks from Warsh for signals on the inflation outlook, the state of the U.S. economy and the rate path at coming meetings. His comments are also significant for global markets, including Bitcoin (BTC) and other cryptocurrencies. Key remarks from Warsh: - Economic activity is growing at a strong pace. Domestic demand has remained resilient. Productivity is high and capital investment remains strong. - The committee believes further information will help determine the appropriate policy stance. It is closely monitoring the external environment, which has not become more relaxed, and will ensure price stability. - Third-quarter GDP growth could be above 3%. The discussion focused mainly on inflation. - Credit conditions have tightened. Market participants are more cautious about capital allocation. We do not want to, and cannot, conclude that financial conditions are tight. Volatility in financial markets did not surprise me. - Six policymaking meetings are expected in 2028. The FOMC meeting schedule will be rearranged starting this fall. We believe eight meetings a year is the appropriate number. In 2027, no meeting will include a rate vote or statement. I predict two meetings in 2028 will not hold a rate vote. - We have made clear that we are ready to act. Information gathered in the coming period will help us determine the direction of policy. - The Fed has implemented a new monetary therapy. Inflation compensation measures, as measured by inflation swap contracts, are showing a positive trend. In the context of global instability, inflation expectations have moved in the right direction. I am pleased with these signs. - We made this decision to assess the current situation and determine whether it will become clearer in the coming period. According to our assessment, it will become clearer. This is not investment advice.