The new chairman of the US Federal Reserve (Fed), Kevin Warsh, has officially refused to give any hint regarding the direction of interest rates ahead of the central bank's policy meeting at the end of this month. He made the assertion during his debut appearance at the European Central Bank (ECB) Forum on Central Banking held in Sintra, Portugal, today.
Despite choosing to lock in his short-term monetary strategy, Warsh openly admitted that the current inflation rate projection in the United States is still at a worrying level. He stressed that the main commitment of the global central banking market is to maintain price stability to ensure that the cost of living of the people does not continue to soar.
His presence in the elite panel session was also joined by other world banking figures including ECB President Christine Lagarde, BoE Governor Andrew Bailey, and BoC Governor Tiff Macklem to discuss the impact of the AI technology chain on economic productivity.
In a separate development, Warsh announced that the leadership structure of the five special task forces he formed last month will be officially announced next week. The task force was established to examine, overhaul, and reassess the efficiency of the Federal Reserve's internal operating and monetary policy structures.
He revealed that the task force's committee would be comprised of outside economists, academics, and experienced former central bankers. Warsh also said the Fed is also appointing experts from abroad to gain a different perspective that is more objective and clear in restoring the institution's credibility.
