In its decision to hold rates steady this month, the Fed said that while inflation remains high, it wanted to gather more information before making another decision to change rates.
The Fed also noted that while there was uncertainty, the US economy remained resilient.
Warsh acknowledged that inflation remained too high, but noted that there were other signs – such as tightening credit conditions – that the economy was moving in the right direction.
There is plenty more economic data to come between now and the committee’s next meeting, the Fed chair added, which should paint a more detailed picture of the state of the economy.
At that point, Warsh said, “we’ll be, I think, better positioned to determine the right policy decision and the stance of policy.”
While last month the committee signalled there could be one more rate rise this year, Warsh would not be drawn out on where he thinks they will go in six weeks’ time.
“A lot of things can happen, so I’m not going to be able to share with you my musings.”
The decision to hold rates steady was not unanimous.
While 10 of the 12 committee members voted to keep rates unchanged, Governor Lisa Cook and Cleveland Fed President Beth Hammack voted to increase rates to 4%-4.25%, from its current 3.75%-4%.
The bank’s next meeting will be held over 8-9 December.
