No hints, no cuts in sight. Plan around today's rates.
The Fed chair kept markets guessing about October, but his message on inflation was clear. Businesses should budget for rates staying near current levels.
By the Xuru Technologies team · 17 October 2026
Key takeaways
- Speaking in Bangkok on 16 October, Kevin Warsh said he does not prejudge meetings.
- He called inflation persistent and uncomfortably elevated.
- Traders reduced bets on an October hike; the funds rate stands at 3.75%–4%.
Under Warsh, the Fed gives less forward guidance. That means businesses should plan for a range of outcomes rather than wait for signals.
What happened
Trading Economics reported Warsh's remarks at an IMF summit and the market reaction. A majority of officials had projected another hike before year-end, as reported after the September decision.
What it means for businesses
- No relief soon. Credit stays expensive into 2027.
- Surprises possible. Less guidance means more volatility.
- Customers stay careful. Value messaging remains key.
Planning for 2027
| Area | Approach |
|---|---|
| Budgets | Assume current rates or slightly higher. |
| Projects | Phase them and fix costs in writing. |
| Revenue | Prioritise retention and direct sales. |
| Costs | Automate admin to protect margins. |
Frequently asked questions
What is the current Fed funds rate?3.75% to 4% after the September 2026 hike.
3.75% to 4% after the September 2026 hike.
Will the Fed raise rates again in October 2026?Warsh would not say. After his remarks, markets saw a hold as more likely. This is general information, not financial advice.
Warsh would not say. After his remarks, markets saw a hold as more likely. This is general information, not financial advice.
How should a business plan for 2027?Budget for rates near today's levels, phase investments and focus on projects with quick payback.
Budget for rates near today's levels, phase investments and focus on projects with quick payback.
Uncertain rates. Fixed written quotes.
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