Summary of key points from Federal Reserve Chair Warsh's October 28 press conference

I. Monetary Policy Objectives and Commitment to Fighting Inflation. Firm policy stance: Warsh emphasized that the Federal Reserve will deliver price stability "without question," and made clear that there is no "soft inflation target." Anchoring to the 2% target: He specified that the concrete goal of price stability is 2% as measured by PCE. Inflation expectations management: Although inflation expectations have risen recently, long-term indicators show that households and businesses remain confident in the Fed's ability to achieve price stability. II. The Transmission Effects of Interest Rates on New Technologies and Capital Expenditure. Interest rate transmission mechanism emerging: Warsh said he had previously been skeptical about the impact of interest rates on artificial intelligence, but facts have proven that "interest rates affect almost everything." Since early September, the effects of interest rates have been observed both within and outside the technology complex. Tightening financial conditions and credit spreads: Credit spreads on some assets have widened, and some financial conditions have tightened. Broadening of capital expenditure: Interest rates are indeed crucial to new technologies, and the current strong momentum in capital expenditure is broadening, no longer confined to a few narrow areas. III. Market Dynamics and Observation of Macro Indicators. Decoupling of interest rates and oil prices: Warsh noted that until recently, there had been a stable correlation between rising oil prices and market-priced interest rates, but rates have recently turned downward, while he also noted that crude oil futures prices have risen. Assessment of working group progress: Five working groups within the Federal Reserve are advancing their work, with some conclusions to be released before the end of the year, but their conclusions are unlikely to be reflected at the current policy juncture. The period ahead will contain abundant information. IV. Independence and Political Neutrality. Politicized decisions: Regarding the upcoming midterm elections, Warsh explicitly emphasized that political considerations played no role in this interest rate decision. This is true not only for him personally but also for other FOMC colleagues; politics or elections were not mentioned at all during the two-day FOMC deliberations.