Warsh explains: Why the Fed kept rates unchanged in July and then raised rates in September

Odaily News: The Federal Reserve raised interest rates in September as expected, after the central bank kept rates unchanged at its July meeting. Fed Chair Warsh said that between the two meetings, three things changed. He said that data released in recent weeks showed the U.S. economy performing strongly, especially the labor market. At the same time, inflation throughout the summer remained at a high level, clearly above the Fed's 2% year-on-year inflation target. Finally, he said geopolitical factors also prompted the Fed to change its assessment of the economic outlook, though he did not directly mention the war between the U.S. and Iran in the Middle East. Warsh said: "All three of these things contributed to the firm and unanimous decision we made today." (Jinshi)