finance
Federal Reserve Holds Rates Steady; New Chair Holds First Press Conference
The Federal Reserve left interest rates unchanged and released updated economic projections. Kevin Warsh conducted his first press conference as chair, answering questions on inflation, growth, and future policy signals.
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Kevin Warsh delivered his first press conference as chair, fielding questions on the committee's latest economic projections and balance-sheet plans.
Officials left the federal-funds rate target range at its current level, matching market expectations of no immediate change. The updated projections showed a hawkish tilt, with the median dot plot indicating one rate increase this year.
Traders interpreted the combination of steady rates and firmer projections as keeping the possibility of a hike later in 2026 on the table. Warsh signaled that the committee may reduce reliance on forward guidance and the dot plot in future communications.
“Will he shift to a cautiously hawkish path citing a resilient labor market, higher growth and soaring inflation... Analysts noted that a more independent approach from the new chair could increase bond-market volatility in coming sessions.”
