Fed Chair Warsh Says Strong Data, High Inflation, and Geopolitics Drove September Rate Hike

The Federal Reserve raised interest rates in September as expected after leaving rates unchanged at its July meeting. According to Odaily, Fed Chair Kevin Warsh said three things changed between the two meetings: recent data showed the U.S. economy remained strong, especially the labor market; inflation stayed elevated through the summer and well above the Fed's 2% year-over-year target; and geopolitical factors also altered the central bank's outlook for the economy. Warsh did not directly mention the war between Iran and Israel in the Middle East. He said those factors contributed to the Fed's firm and unanimous decision.