Key Highlights

● Fed Chair Kevin Warsh was asked about the midterm elections.

● He said politics played no role in the decision.

● The Fed held rates in a 10-2 vote.

● The midterms are on Tuesday, November 3, 2026.

At his press conference after the Federal Reserve's October 27-28 meeting, Chair Kevin Warsh was asked about the midterm elections. His answer was direct. "politics played no role in the decision," Warsh said, according to the Fed's transcript. He added: "I didn't hear an utterance about politics."

The remarks came with the midterms set for Tuesday, November 3. Democrats are widely predicted to win the House, while the Senate is more in doubt, according to market data.

The decision

The Fed left its benchmark rate range unchanged. The vote was 10-2. Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, each preferring a quarter-point hike. The Fed had raised rates in September.

The statement upgraded the Fed's description of growth from "solid" to "strong" and said: "Inflation remains elevated." Warsh echoed that at his press conference: "But Inflation remains elevated." He added: "The Committee will deliver price stability." On jobs, he said: "Job gains have kept pace with the workforce, and the Unemployment rate has changed little."

No forward guidance

Warsh declined to signal the Fed's next move. "I don't believe in forward guidance absent exigent circumstances, absent a crisis," he said. "I also don't believe in prejudging meetings. A lot of things can happen."

Markets drew their own conclusions. CME FedWatch odds point to a December hike as the likely outcome, according to market data. James McCann of Edward Jones said: "Chair Warsh was reluctant to provide strong signals at the FOMC meeting yesterday."

Officials push for higher rates

On Friday, October 30, 2026, three Fed officials said rates need to go higher. St. Louis Fed President Alberto Musalem said: "I judge that additional firming of Monetary Policy will be necessary, and soon." Dallas Fed President Lorie Logan said she wants at least two more hikes. Richmond Fed President Tom Barkin said: "I think the question though is pace."

Data added to the case. Thursday's figures showed third-quarter GDP growing faster than expected and core PCE inflation rising. "Today's data strengthens the case for another rate increase in December," a Wealth advisor said.

The rate outlook weighed on stocks alongside a wave of disappointing technology earnings. The S&P 500 fell 140.32 points to 7,580.07, the Dow lost 572.25 points to 51,770.31, and the Nasdaq Composite dropped 747.73 points to 25,437.00, its worst day since June 5. Intel (NASDAQ:INTC)'s cash-burn warning and Amazon (NASDAQ:AMZN)'s results set off a chip and AI selloff, oil traded above $100, and a reported $6.3 billion Binance hack hit crypto.

Treasury yields eased on Friday, with the 10-year yield falling, but markets still expect higher rates by mid-2027, according to LSEG. Warsh also commented on Credit markets, saying: "Market participants are becoming somewhat more discerning in their Capital allocations," and "I'm unwilling and unable to call them tight."

What to watch

The election on Tuesday will test Warsh's message that politics stays outside the Fed's deliberations. The October jobs report on Friday, November 6, is the next major data point before the December meeting, and a strong reading could reinforce hike expectations.

Investors will also weigh Earnings from Apple (NASDAQ:AAPL) and Palantir (NASDAQ:PLTR) on Monday and ISM surveys during the week. With Warsh refusing to prejudge meetings, each new data release carries extra weight for the Fed's next decision.