Fed Chairman Warsh press conference on Fed policy decision [FULL]

The Federal Reserve left interest rates unchanged, but Chairman Kevin Warsh delivered one of his clearest statements yet about how he wants the Fed to operate.

In this press conference, Warsh explains why the Federal Reserve is stepping back from forward guidance, why markets should respond to economic data instead of Fed messaging, why Treasury yields have already tightened financial conditions without additional rate hikes, and why the Fed remains committed to returning inflation to its 2% target.

Warsh also discusses AI-driven capital spending, stronger business investment, the role of financial markets in setting policy, inflation expectations, Jackson Hole, and the debate inside the FOMC following a 9-3 vote to hold interest rates steady.

Timestamps
00:00 Fed holds rates 9-3
00:47 No “soft” inflation target
02:57 Treasury yields are doing the tightening
03:30 Markets are learning to ignore the Fed
04:30 Why forward guidance is fading
05:02 AI investment is reshaping the economy
06:27 The Fed’s four biggest questions
07:39 Why markets matter more now
10:55 Inside the 9-3 “family fight”
12:40 Why June inflation didn’t change the decision
14:06 Should rates already be higher?
17:11 Can the Fed still beat inflation?
19:06 Are supply shocks changing inflation?
20:26 Why this wasn’t a pause
21:38 Jackson Hole preview
24:01 Can inflation and employment both improve?
29:34 Warsh explains his reaction function
34:23 “What are you waiting for?”
37:14 Defending the Fed’s AI task forces
39:27 Why the Fed still hasn’t raised rates
43:08 The real news from today’s meeting

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Rates, schmates. The real question is, will Fed Chairman Kevin Warsh provide a Task Force update?

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