SINTRA, Portugal — Federal Reserve Chair Kevin Warsh joined leading central bankers at the European Central Bank's annual policy forum, where discussions centered on the global fight against inflation, monetary policy uncertainty and the challenges facing major economies, while highlighting areas of cooperation despite broader political tensions.
Warsh appeared alongside European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey and Bank of Canada Governor Tiff Macklem during a public panel at the ECB's annual gathering in Sintra. The forum marked one of Warsh's first major appearances on the international stage since taking office as Federal Reserve chair in May.
According to Reuters, Warsh held a series of private meetings with counterparts from Europe and other regions during the three-day conference. People familiar with the discussions said the conversations focused broadly on economic conditions and institutional issues rather than detailed coordination of monetary policy, reflecting the independence of individual central banks.
During the panel discussion, Warsh reiterated the Federal Reserve's commitment to restoring price stability while maintaining his approach of avoiding forward guidance on future interest-rate decisions. He said staffing details for newly established Federal Reserve task forces reviewing aspects of the central bank's operations would be announced soon and noted that international experts would participate in some of the groups.
The Sintra meeting came as many advanced economies continued to grapple with inflation that remained above central-bank targets, although recent data in several jurisdictions suggested price pressures had moderated. Policymakers also discussed longer-term issues including productivity, artificial intelligence, financial stability and the resilience of the global financial system, according to public remarks and officials familiar with the meetings.
Warsh's participation followed his confirmation as Federal Reserve chair and his first Federal Open Market Committee meeting, where the Fed left interest rates unchanged while emphasizing its commitment to achieving price stability. In subsequent congressional testimony, Warsh declined to signal the timing of future policy moves, saying the central bank would remain guided by incoming economic data.
The ECB's annual forum concluded without any joint policy announcement. Central bankers returned to their respective jurisdictions with monetary policy decisions continuing to depend on domestic economic conditions and incoming data, officials said.
