Fed Chair Warsh declined to signal his next rate move at IMF Bangkok meeting

Federal Reserve Chair Kevin Warsh declined to say whether the central bank will raise interest rates at its Oct. 27-28 meeting, telling an audience in Bangkok on Friday that he does not prejudge decisions.

"I don't prejudge meetings. I don't believe in saying now what I might do at the meetings that we have in the balance of this year," Warsh said, according to CNBC. He spoke during the IMF-World Bank annual meetings, talking with International Monetary Fund Managing Director Kristalina Georgieva.

Warsh conceded that his stance might let down people who were hoping for some guidance. "It's a new chapter at the Fed [and] we're not in that business anymore. But we can go in any direction you'd like," he said.

He characterized the string of hikes from central banks worldwide as a "synchronous tightening in monetary policy in most places around the world," with "no free riders." Each central bank acts under its own mandate, he said. The wave counts two increases from the European Central Bank, according to Euronews, which reports that Warsh said he heard the same "resolve" from central bankers in Bangkok.

Warsh described artificial intelligence as "probably the most consequential change" for the U.S. and global economies in his lifetime, according to Euronews. He said the path to the technology's payoff is likely to be "very bumpy" and that how it will affect jobs in the short run remains unclear. He conceded that spending on AI is lifting prices for now because it adds to demand, though he expects the technology eventually to raise how much the economy can turn out.

U.S. inflation as measured by consumer prices accelerated to 3.7% in September, up from 3.4% in August. The core measure, which leaves out food and energy costs, came in at 2.6%. Traders put the chance of unchanged rates at the October meeting at 72.3%. Markets see roughly a 90% likelihood of an increase in December, according to Euronews, which adds that the minutes from the Fed's September meeting indicated most officials anticipate one more rise before year-end.

Other Fed officials have offered differing views, according to Euronews. New York Fed President John Williams has said it may be appropriate to have one more rate hike. Fed Governor Michelle Bowman told attendees in Bangkok on Wednesday that she saw no pressing need to move.

Friday's remarks were among Warsh's final public comments before the Fed enters its quiet period on Saturday, when officials may not discuss policy until the meeting concludes, according to Euronews. The next chance for investors to hear Warsh will be the press conference he holds once the decision is announced.