Warsh explains why the Fed kept interest rates unchanged in July and then raised them in September.

Odaily Planet Daily reports that the Federal Reserve raised interest rates as expected in September, after keeping rates unchanged at its July meeting. Fed Chairman Warsh stated that three things changed between the two meetings. He said that data released in recent weeks indicates a strong U.S. economy, particularly in the labor market. Meanwhile, inflation remained high throughout the summer, significantly above the Fed's 2% year-on-year inflation target. Finally, he indicated that geopolitical factors also prompted the Fed to change its assessment of the economic outlook, though he did not directly mention the Iraq War in the Middle East. Warsh stated, "These three things have led to our firm and consistent decision today." (Jinshi)