Fed Chair Warsh Denies Politics Influenced Rate Hold, Deflects Midterm and White House Questions

Federal Reserve Chair Kevin Warsh on Wednesday rejected any suggestion that next week's U.S. midterm elections influenced the central bank's decision to hold interest rates steady, telling reporters, "Political factors did not affect this decision. I just spent two days in meetings with colleagues upstairs. I did not hear anyone talking about politics." Warsh declined to respond to President Trump's public criticism that rates should be lower and his characterization of FOMC colleagues as "political," saying he would not address public remarks by elected officials. He also said he was unaware of any involvement by himself or the Fed in White House proceedings tied to allegations against Governor Lisa Cook, as a White House committee prepares hearings next week. Warsh reiterated his commitment to bringing inflation down to 2%. Markets expect the Fed's next move to be a hike, with CME FedWatch showing odds above 80% of a quarter-point increase at the December meeting as of Wednesday afternoon.