Fed minutes due as analysts debate whether Warsh will curtail them
Minutes may show Warsh's internal rate debate, revealing divided policymakers and the Fed's no-guidance stance as inflation doubles the 2% target.
- The Federal Reserve released minutes on Wednesday from its June 16-17 meeting, offering insight into Chairman Kevin Warsh's first internal "family fight" over interest rate policy as officials decided to leave rates unchanged.
- Policymakers on the Federal Open Market Committee voted unanimously to hold the benchmark interest rate at 3.5%-3.75%, as total PCE inflation reached 4.1% in May, driven by tariff pass-through and energy costs.
- Minutes revealed a policy split; nine of 18 officials penciled in at least one hike before year-end, reversing March's cut-leaning median projections from the previous forecast cycle.
- Warsh signaled a shift in Fed communication, stripping the policy statement of forward guidance and slashing its word count from 341 in April to 132 words in June.
- Markets are pricing in additional hikes while the Fed navigates persistent inflation running above its 2% target, as officials noted that future policy actions "would depend on incoming information.
11 Articles
11 Articles
Fed policymakers' inflation worries weighed on rate cut outlook at Warsh's first meeting
Federal Reserve policymakers are increasingly concerned about inflation and the uncertainty about the direction it may take was reflected in the minutes of the Fed's latest monetary policy meeting released on Wednesday.The central bank's first monetary policy meeting under the leadership of Fed Chair Kevin Warsh occurred against the backdrop of rising inflation, as energy prices surged earlier this year and pushed the pace of price growth up and…
Kevin Warsh buried an unusual, unhedged promise in his first Fed minutes—and one economist says it's the strongest signal in the document
A former Fed economist says one unhedged sentence in Warsh's shortest-ever statement reveals more than the "family fight" minutes themselves.
Interpreting Kevin Warsh’s words will be like reading the future in the clouds. At least that’s what he expects to happen under his tenure as president of the US Federal Reserve. The economist born 56 years ago in Albany aspires to regain the cryptic style of his master Alan Greenspan, who died two weeks ago at the age of 100. That’s why the Fed’s minutes, which contain discussions and debates about past meetings, become more important in this n…
Following the meeting on June 16 and 17, which resulted in a fourth consecutive change in interest rates, Mr. Warsh reported that policymakers had had "a good family argument." This was precisely what he had previously stated he wanted: lively, unconventional, and unrestrained debates. The problem for investors is that he provided very few clues about the content of these discussions and their implications for the direction of monetary policy …
Fed minutes due as analysts debate whether Warsh will curtail them
July 8 (Reuters) - A critical readout on Wednesday of the first Federal Reserve policy meeting overseen by Chairman Kevin Warsh may offer greater insight into the "family fight" the new central bank leader said unfolded over two days last month as offi...
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