Federal Reserve holds rates steady at Kevin Warsh’s first meeting as chair
Nine Fed officials now see at least one rate hike this year as inflation stays elevated and markets brace for tighter policy.
- Federal Reserve Chairman Kevin Warsh led his first policy meeting on Wednesday, voting unanimously to maintain the federal funds rate in the 3.5%–3.75% range while eliminating language indicating future rate cuts.
- President Donald Trump appointed Warsh earlier this year expecting rate cuts, yet the new chair has previously criticized the Fed's practice of issuing forward guidance and quarterly economic projections.
- With inflation at 4.2% in May, nine of 18 policymakers now project at least one rate hike this year, while Warsh appears to have withheld his own rate forecast.
- The Nasdaq composite slipped 0.6% and Treasury yields rose following the announcement, as analysts warned that the Fed's pivot reflects heightened concerns about inflation remaining above the 2% target.
- Warsh announced the creation of task forces to review Fed communications and data streams, seeking to reduce the institution's public profile while addressing economic pressures linked to the Iran conflict.
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The US Federal Reserve also leaves the key interest rate unchanged under its new head Kevin Warsh. The Central Bank Council in Washington voted closed for a new interest break.
Appointed by Trump to lead the Fed, Kevin Warsh vows to reshape the institution
On Wednesday, June 17, the US central bank kept its key interest rates unchanged and mentioned a possible hike by the end of the year due to inflation driven by the conflict in the Middle East. Its new chair, who has been critical of indicators used by the institution, announced the creation of five task forces to reform the Fed.
Kevin Warsh began his era in the Federal Reserve, leaving the interest rate unchanged on Wednesday, June 17.However, officials split as to whether they expect to increase it this 2026.New projections from monetary policy makers showed that nine officials forecast at least a quarter percent increase this year, while six officials anticipate at least two increments. Another nine expect that there will be no change or even a cut.He called attention…
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