**Fed Chair Warsh remains hawkish and focused on bringing price stability**

 Fed keeps **interest rates steady at 3.75-4%**.

 **Inflation remains elevated above the 2% target** for over 6 years.

 **Geopolitical uncertainty** is the primary reason for rising inflation.

 **Economic activity is expanding** and the labour market remains strong.

 In 2027, the FOMC schedule will change, with the same 8 Fed meetings annually, but **one meeting will focus only on monetary policy strategy** without any rate decision.

 In 2028, the Fed will have **two such monetary policy strategy meetings and six on rate decisions**.

 Warsh says it is important to keep **‘time and space’** for such ‘strategic deliberations’ to focus on the ‘long-term horizon.’

 On December rate hikes, Warsh says the coming period is **‘information rich’** and future hikes will depend on it.

 Warsh says he is **‘unwilling and unable’** to call financial conditions tight.

 Warsh believes **higher interest rates do affect AI spending**, irrespective of revenues.

 Warsh clarified that **‘politics’ or ‘midterm elections’ had no role** in today’s decision about Fed rates.

 Any decision on **shrinking the Fed balance sheet** will only come early in Q1 2027, after recommendations from a task force.

 Overall, he **doesn’t see current economic growth causing inflation** but is closely watching the numbers for the future.

**** **[@venture](https://t.me/venture)