Thursday, October 29, 2026

The Fed's Policy Dilemma

The Fed’s AI Puzzle: Will High Rates Slow the Boom?
https://www.wsj.com/economy/central-banking/the-feds-ai-puzzle-will-high-rates-slow-the-boom-c9c43ce2
Warsh said higher rates are reaching the investment surge and growth is broadening beyond it. The positions cut in opposite directions for where to set rates.
 
In Moving Gradually, Fed Risks Having to Play Catch-Up to Quell Inflation
https://www.nytimes.com/2026/10/29/business/economy/federal-reserve-interest-rates.html
Federal Reserve officials are expected to restart rate increases in December, but the cadence of additional moves will depend on the data.
 
Fed Will Hold Fewer Rate-Setting Meetings Starting Next Year
https://www.nytimes.com/2026/10/28/business/economy/fed-meetings-2027-interest-rates-warsh.html
Kevin M. Warsh, the Federal Reserve’s chairman, said the central bank would vote on interest rates seven times in 2027 and six in 2028. It has traditionally voted eight times per year.