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Not going to prejudge: Fed Chair keeps rate outlook open; calls AI positive supply shock

Fed Chair Kevin Warsh declined to signal the central bank's next interest-rate move, saying he would not “prejudge” policy decisions. Speaking at the 2026 IMF and World Bank Annual Meetings, he described artificial intelligence as a “positive supply shock” for the economy over the medium term, though it is hitting demand first. He said the US is seeing a massive investment surge, though the trend is not equally visible across countries, and challenged the view that prolonged economic weakness is inevitable. Major brokerages expect a possible rate hike in December, while markets broadly expect the Fed to hold rates steady at its October 27-28 meeting.

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Original headline: Not going to prejudge : Fed Chair keeps rate outlook open ; calls AI positive supply shock

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