Fed Chair Kevin Warsh speaks after raising rates for the first time in three years [FULL]
The FOMC voted 12-0 to raise the federal funds rate by a quarter point to a range of 3.75% to 4%, the first increase since July 2023. Kevin Warsh took questions for 21 minutes afterwards. He argued policy was never tight to begin with, saying he was “hard pressed to describe broad financial conditions as restrictive” and that the committee therefore “removed a dose of accommodation.” Asked what a rate hike does about a closed energy supply, he said the Fed cannot move any single price but will stop relative price changes from broadening out.
Featuring:
Kevin Warsh, Chair, Board of Governors of the Federal Reserve System
Jennifer Schonberger, Senior Reporter, Yahoo Finance
The sixteen reporters who asked questions are named in the timestamps below
Timestamps
0:00 The decision: A quarter point, to 3.75% to 4%
0:30 “Economic activity is expanding at a solid pace”
1:05 “Hard pressed to describe broad financial conditions as restrictive”
1:43 “So we removed a dose of accommodation”
2:18 The jobless rate at 4.1%, and hours and openings rising
2:46 “Inflation is too high and has been for too long”
3:17 PCE near 3.6% in August, and categories still above 3%
3:49 What the committee agreed in July, and why it waited
4:18 The Jackson Hole standard, and why today it was not met
5:20 The projections: GDP, inflation and unemployment
5:50 The median path: 4.1% at the end of this year
6:23 “Those who are least well off have the most to gain”
7:17 Richard Escobedo, CBS: A rate hike does not reopen the Strait of Hormuz
8:04 Colby Smith, New York Times: Is this the start of a sequence?
9:14 Edward Lawrence, Fox Business: Was this a market-led hike?
10:26 Elizabeth Charles, ABC News: What it does for consumers, and Trump
11:29 What changed since July, and this morning’s retail sales
13:26 Financial Times: Are rates restrictive now, or not?
14:22 Steve Liesman, CNBC: Where is the fed funds rate against neutral?
15:24 Victoria Guido, Politico: On the market’s focus on August CPI
16:14 “Data point dependence is a dangerous preoccupation”
16:36 Washington Examiner: Trump’s threat, and the Fed’s independence
17:32 Brian Cheung, NBC News: Who exactly are the least well off?
18:57 “Inflation is a choice, is a choice”
19:16 On the ECB, and what he heard from other central banks
20:42 Nick Timiraos, Wall Street Journal: What changed since last fall
22:03 Neil Irwin, Axios: What is the bond market telling you?
22:39 Three reasons long yields rose, including the hyperscalers
23:57 Michael McKee, Bloomberg: Why the projections say 2029
25:45 CNN: On AI leaders warning they could lose control
26:30 The Fed’s new AI task force, reporting by year end
27:09 Jennifer Schonberger, Yahoo Finance: Can rate hikes fix a supply shock?
#Fed #KevinWarsh #FOMC #InterestRates #Inflation #YahooFinance
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