Warsh Boosts Rate Hold Expectations; Midterm Debates Ramp Up Nationwide

SPEAKER_1 (0:02)

Bloomberg Audio Studios, Podcasts, Radio, News.

Karen Moskow (0:10)

Good morning, I'm Karen Moskow.

Alexis Christoforos (0:12)

And I'm Alexis Christophoros. Here are the stories we're following today.

Karen Moskow (0:17)

While we begin in Bangkok here, Alexis, where Fed Chair Kevin Warsh spoke at the International Monetary Fund's annual meetings. In a moderated discussion early this morning, Warsh made no remarks on monetary policy or his outlook for the US economy, apart from reiterating the Fed's commitment to price stability.

Kevin Warsh (0:35)

At the Federal Reserve, we made very clear that we would deliver price stability, and we removed a dose of accommodation about a month ago. I don't prejudge meetings. I don't believe in saying now what I might do We had the meetings that we have in the balance of this year, but that was the situation.

Kristalina Georgieva (0:54)

You disappointed half of the audience or more.

Kevin Warsh (0:56)

They can all turn it off. It's a new chapter at the Fed, and we're not in that business anymore.

Karen Moskow (1:02)

And rate hike bets fell during Fed Chair Warsh's remarks. Warsh also talked about how global economic activity is flowing through the US.

Kevin Warsh (1:11)

What are we seeing in the global economy as it affects the US? I would say broadly over the month or so that's transpired since then. The world has broadly conformed to our expectations.

We'll be meeting a couple more times this year, and that will be the crystallizing moment. But right now we have structural growth. We have an investment surge. It's not hitting every country at the same element, but in the United States, we're having a massive investment surge.

Karen Moskow (1:43)

Fed Chair Kevin Warsh also called AI a major boost to productivity, and has come and sent the IMF annual meeting.

Alexis Christoforos (1:49)

And Karen Fed Chair Warsh's Task Force on Productivity and Jobs will hold a field hearing in San Francisco next month. Warsh saying the task force will quote, wrestle with issues, including the economic impact of artificial intelligence. Earlier this summer, Warsh established five task forces of outside experts that will study key areas of monetary policymaking.

Karen Moskow (2:11)

Meanwhile, in Washington, Alexis, news from another task force. President Trump's AI. Task Force will commission a report on technology risks. The Super Intelligence Force Task Force agreed to address risks related to cyber security, biosecurity and model control and accountability, as fears rise over the potential dangers posed by the technology. The task force will commission a report to evaluate concerns and develop protocols and mechanisms for labs to provide early warnings and systemized notifications to the government.

Alexis Christoforos (2:42)

Now to a tragic story in Oregon. Authorities say a 16-year-old opened fire at an elementary school in Bend, Oregon, killing children and a teacher. Here's Bloomberg's Matt Piper.

Matt Piper (2:52)

Police say a 16-year-old used a gun to break through locked school doors and killed three children and a teacher. Bend Police Chief Mike Krantz.

Mike Krantz (3:01)

The deceased at the scene include three children, ages 5, 8 and 11, and one teacher.

Matt Piper (3:08)

The shooter is also dead, shot, police say, by a community member who ran into the school when they realized what was happening. Investigators say they do not know if the attacker knew anyone at the school or if they were a former student. Matt Piper, Bloomberg Radio.

Karen Moskow (3:22)

All right, Matt, thank you. And of course, we'll continue to bring you the latest developments on that story as they become available. We want to turn now to politics and the midterm elections, for they're just a few weeks away. A key debate took place in Alaska last night between Republican Senator Dan Sullivan and Democratic challenger Mary Peltola. Sullivan emphasized his differences from President Trump just days after the president rallied for his reelection in the state. He says he opposed Trump's proposal to allow Russia to sell diesel in the international market.

Dan Sullivan (3:51)

I put a statement out opposing it. I don't think it's a good idea at all. I just led the effort on the Russian Sanctions Act that passed the Congress.

So I'm opposed to that.

Karen Moskow (4:03)

Meanwhile, Democrat Mary Peltola aimed to portray Sullivan as part of the Washington establishment.

SPEAKER_9 (4:09)

Prices are too high for hardworking Alaskans and DC politicians are waging forever wars that are skyrocketing our costs.

Karen Moskow (4:16)

Democrat Mary Peltola has consistently pulled the narrowly ahead of incumbent Republican Senator Dan Sullivan in a race that could decide control of the Senate.

Alexis Christoforos (4:25)

And Karen, we saw another key Senate debate a long way from Alaska last night in Maine, where incumbent Senator Susan Collins faced off with Democratic challenger Troy Jackson. Collins aimed to highlight her independent record as a long time Republican Senator.