In the final scheduled remarks by a Fed official before the pre-meeting blackout period, Warsh also called the artificial intelligence boom "probably the most important thing happening in the global economy on the upside," while noting that surging AI investment is creating price pressures and that the transition to a more productive economy could be bumpy. Separately, Chicago Fed President Austan Goolsbee called the September inflation report "discouraging" and flagged service sector inflation as a concern, though he said policymakers should focus on the broader trend rather than one report and added that he is "not a fan of telegraphing Fed moves ahead of meetings."
Warsh's refusal to offer guidance leaves markets divided over the October decision after Wednesday's Consumer Price Index report showed annual inflation accelerated to 3.7% in September from 3.4% in August, topping the 3.6% consensus forecast as gasoline jumped 9.1% on the month. Core CPI rose 0.3% on the month and 2.6% from a year earlier, both a tenth of a percentage point above expectations, while inflation-adjusted weekly earnings fell 0.5% in the final inflation release before the Nov. 3 midterm elections.