Fed Chair Warsh gives no signal on October rate move

Fed Chair Kevin Warsh did not endorse or push back on recent signals from colleagues that officials aren't in a hurry to raise interest rates this month. Warsh said the Fed no longer gives advance guidance on policy decisions. "I'm not going to prejudge the meeting. I'm not going to say that I'm likely to do whatever at the coming meeting," Warsh said. "The Fed is turning a new page, and we just don't do that anymore." Warsh made the remarks Friday morning local time during a moderated conversation on the sidelines of the International Monetary Fund meetings in Bangkok. It came as Fed officials were about to enter their quiet period ahead of their Oct. 27-28 meeting. The Fed voted unanimously last month to raise rates by a quarter percentage point to a range between 3.75% and 4%. It was the first rate increase in three years. In projections released at that meeting, most of Warsh's colleagues anticipated at least one more rate increase this year. Warsh has said he wants investors to focus on the economy, not on hints from Fed officials about their next move. Two weeks ago, however, senior officials who consult with Warsh on policy strategy signaled the Fed wasn't in a hurry to raise rates again this month. Soon after, the probability of an October rate rise implied by futures markets fell sharply. This week, however, the September inflation data came in firmer than expected. Core consumer prices, which exclude volatile food and energy items, rose 0.33% in September from the prior month, the second straight strong monthly gain. A separate measure of producer prices released Thursday was also strong. The Fed's October meeting takes place less than a week before the midterm elections. That means that whether it decides to raise rates or hold them steady, the decision could receive more political scrutiny than usual.