Federal Reserve Chair Kevin Warsh said Wednesday that he heard no mention of elections or politics during Federal Open Market Committee deliberations, rejecting suggestions that next week’s US midterm vote influenced the central bank’s decision to leave its benchmark interest rate unchanged at 3.75% to 4.00%. Warsh also declined to weigh in on President Donald Trump’s remarks calling him “great” while accusing the rest of the board of being political, saying he was “not going to be responding to quotes from public officials.”
Speaking at his post-meeting press conference after the 10-2 vote, Warsh described the committee’s debate as a “family fight” and said policymakers wanted to take stock ahead of an “information rich” period before deciding on further tightening. While noting that credit spreads have widened and that higher borrowing costs are affecting the technology and AI sectors as capital expenditure broadens, Warsh said he was “unwilling and unable” to call financial conditions tight and added that most officials do not believe the economy is running too hot.