Federal Reserve holds rates steady at Kevin Warsh’s first meeting as chair
New projections show nine officials expect a rate hike by year-end as the Fed drops forward guidance and warns inflation remains elevated.
- 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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Bitcoin Slides as the Fed Holds Rates but Turns Hawkish in Kevin Warsh's First Meeting as Chair
Major cryptocurrencies edged lower on Wednesday after the Federal Reserve held interest rates steady but released hawkish economic projections in Kevin Warsh‘s first meeting as chair. Bitcoin traded around $64,150, down roughly 2.2% over the past 24 hours, while ether fell 3.6% and XRP and Solana each slipped around 3%, according to The Block’s price data. The GMCI 30 index of large-cap tokens fell about 2.6%, extending its year-to-date drop to …
Hawaii Tribune-Herald
Warsh kicks off Fed chief tenure with sweeping review as rates remain unchanged
WASHINGTON — Federal Reserve Chairman Kevin Warsh opened a new era on Wednesday, with officials agreeing to leave interest rates unchanged despite inflation stuck well above their target but also launching an ambitious reform agenda to reshape how the U.S. central bank conducts and communicates monetary policy. The post Warsh kicks off Fed chief tenure with sweeping review as rates remain unchanged appeared first on Hawaii Tribune-Herald.
New US Fed chair vows reforms as central bank signals rate hikes on horizon
As widely expected, policymakers at the the US Federal Reserve have kept interest rates unchanged. But in a clear change of tone from previous meetings, Fed officials said they expected raising interest…
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