Why was the tone of Varsh this evening more important than the interest rate decision? ▫ Kevin Warsh, head of the US Federal Reserve Bank, said a few minutes ago that inflation is still too high and emphasized that it is the duty of the Federal Reserve to reduce price growth. He also said that future monetary policy decisions will be made based on additional economic data. Varsh said the Federal Open Market Committee (FOMC) believes additional information will help determine the appropriate stance of monetary policy. He said that GDP growth in the US in the third quarter is expected to exceed 3%. It also expects corporate investment to have double-digit growth. According to Varsh, the recent fluctuations in the financial markets were not surprising. He added that the Federal Reserve has made it clear that it is ready to act and has shown its willingness to do so. ▫ Ali Razapour, editor of the Market Times program, explained this week that the tone and words of Kevin Warsh, the chairman of the Federal Reserve, are more important than the interest rate decision because the markets do not expect interest rates to rise at this meeting. ▫ Earlier, in the July session, Warsh noted that financial conditions are becoming more difficult today due to the performance of the markets themselves, and drew investors' attention to the fact that there is no need to raise interest rates to limit economic conditions. His words at the time led to volatility in the markets and showed that even one sentence by the chairman of the Federal Reserve can change investors' expectations.

Why was the tone of Varsh this evening more important than the interest rate decision? ▫ Kevin Warsh, head of the US Federal Reserve Bank, said a few minutes ago that inflation is still too high and emphasized that it is the duty of the Federal Reserve to reduce price growth. He also said that future monetary policy decisions will be made based on additional economic data. Varsh said the Federal Open Market Committee (FOMC) believes additional information will help determine the appropriate stance of monetary policy. He said that GDP growth in the US in the third quarter is expected to exceed 3%. It also expects corporate investment to have double-digit growth. According to Varsh, the recent fluctuations in the financial markets were not surprising. He added that the Federal Reserve has made it clear that it is ready to act and has shown its willingness to do so. ▫ Ali Razapour, editor of the Market Times program, explained this week that the tone and words of Kevin Warsh, the chairman of the Federal Reserve, are more important than the interest rate decision because the markets do not expect interest rates to rise at this meeting. ▫ Earlier, in the July session, Warsh noted that financial conditions are becoming more difficult today due to the performance of the markets themselves, and drew investors' attention to the fact that there is no need to raise interest rates to limit economic conditions. His words at the time led to volatility in the markets and showed that even one sentence by the chairman of the Federal Reserve can change investors' expectations.