Fed Chair Kevin Warsh Holds Rates Steady, Eyes December Meeting After Inflation Stalls

Federal Reserve Chairman Kevin M. Warsh announced that the central bank will keep interest rates unchanged, citing a lack of progress on inflation. The decision comes despite mounting pressure from markets and lawmakers to ease policy. Warsh described the coming weeks as an “information-rich” period leading up to the Fed’s December gathering, where officials will reassess economic data before making any moves. The Fed’s preferred inflation gauge remains above its 2% target, and recent reports show persistent price pressures in housing and services. By holding rates steady, the central bank signals caution, prioritizing data over political or market expectations. Warsh’s remarks suggest that the December meeting could be pivotal, with potential shifts in policy depending on incoming employment, inflation, and growth figures. Investors and analysts will closely monitor speeches and economic releases in the interim. The takeaway: the Fed is in wait-and-see mode, and the next few weeks of data will determine whether rates stay higher for longer or begin to ease.