Speaking at the International Monetary Fund and World Bank annual meetings in Bangkok, Warsh voiced optimism about US economic resilience and surprise at how well global economies have been "hanging in there" amid geopolitical shocks and tighter monetary policy. In the final scheduled appearance by a Fed official before the pre-meeting blackout period, he refused to preview the Oct. 27-28 decision, saying, "I don't prejudge meetings" and "It's a new chapter at the Fed, and we're not in that business anymore."
The repricing reversed a surge in tightening bets triggered on Wednesday when September Consumer Price Index data showed annual inflation accelerating to 3.7% from 3.4% in August, topping the 3.6% consensus estimate on a 9.1% monthly jump in gasoline prices. Core CPI rose 0.3% on the month and 2.6% from a year earlier, both a tenth of a percentage point above forecasts.