US federal funds rate stood at 3.88 percent by our own market data as of 16 October 2026 07:52 GMT, in force since 14 October.
No guidance on upcoming meetings
Warsh declined to say what the Fed might do at its meetings later this year. He said it was not right to comment in advance on those meetings. Asked about the outlook, he kept to the Fed’s stated commitment rather than signalling a path.
He also said the Fed’s approach has changed. A new era has begun at the Fed, he said, and it no longer acts the way it once did.
AI investment and the supply shock
Warsh described a massive investment boom in the US, though he said it is not affecting every country equally. He said the global economy shows structural growth and resilience.
On artificial intelligence, he said the technology is probably the most important change for the US and global economy in his lifetime. He framed it as a shock that should be recognised as such. In the medium term, he said, it is a positive supply shock, and he expects it to fundamentally change how monetary policy is conducted.
Five working groups
Warsh described five Fed working groups set up to improve the conduct of monetary policy, one of them focused on productivity and employment. The first field session of that group is to be held in the Bay Area on 16 November.
Inflation, he said, is not specific to the US. He added that he has shown the same resolve to ensure price stability as his counterparts around the world.
Source: Federal Reserve | Data: FRED — St. Louis Fed
