Warsh rules out giving guidance on future interest rates

US Federal Reserve Chair Kevin Warsh

US Federal Reserve Chair Kevin Warsh said policymakers "will not hesitate to take the necessary action" to achieve the central bank's inflation target, while ruling out providing forward guidance on the future path of interest rates.

Below are the key remarks from his press conference on Wednesday following the Federal Open Market Committee (FOMC) meeting, which concluded with the decision to keep interest rates unchanged:

· We will take the necessary action on inflation if needed.

· I understand the desire for updated forecasts and commentary.

· However, we need to observe how markets respond to developments in real time.

· The decisions of this committee are extremely important.

· We will not hesitate to take the necessary action as long as it is warranted and appropriate.

· Markets should remain focused on actual data and real-world developments.

· Asset prices have responded in real time to incoming information.

· Market participants are learning how to adapt to the environment rather than trying to control it.

· Market prices will continue to respond in the direction and magnitude they deem appropriate.

· This is a positive development, and the Fed does not need to always be the center of attention.

· You've heard this before, but we will restore price stability.

· Our sole objective is to achieve 2% annual inflation.

· That is the inflation rate considered healthy for the economy.

· Inflation has remained above target for more than five years.

· It cannot be brought back under control in nine weeks or through a modest decline in prices.

· I would not characterize today's decision as a pause in any sense.

· Rather, I would describe it as a careful assessment of the economic outlook.

· It is a review of the difficult issues and what we need to do next.

· Today's decision to leave interest rates unchanged is only the beginning of the story, not the end.