Warsh’s remarks prompt traders to scale back October rate-hike expectations
Updated
Summary
Federal Reserve Chair Kevin Warsh’s remarks prompted traders to scale back expectations of an October rate hike.
Warsh avoided signalling the FOMC meeting outcome and said hotter-than-expected inflation had not changed his assessment of the US economy.
Why it matters
Ahead of the October 27–28 policy meeting, markets priced an approximately 84% probability that rates would remain unchanged; gold climbed above $4,170 an ounce and silver toward $54.5 an ounce on Monday.
Gold also benefited from safe-haven demand amid concerns over AI-related investments, an equity selloff and lower bond yields.
What remains uncertain
The Fed had entered its blackout period ahead of the October 27–28 policy meeting.