Warsh to Face Spotlight as Federal Reserve Likely to Leave Interest Rates Unchanged
Markets expect no change in the benchmark rate, while investors watch the Fed’s updated projections for clues on inflation, growth and future hikes.
- The Federal Reserve is overwhelmingly expected to leave its benchmark interest rate unchanged on Wednesday, holding the federal funds rate steady in a range of 3.5% to 3.75%.
- The Fed is confronting a sharp inflation flare-up fueled by the war with Iran, which pushed the annual Consumer Principle Index to a three-year high of 4.2% in May, completely erasing Wall Street's early-2026 hopes for imminent rate cuts.
- Policymakers are expected to scrub any "easing bias" from their post-meeting statement, with economists predicting the Fed will remove language hinting at future rate cuts and instead signal that rates will remain on hold—or potentially rise later this year if inflation persists.
- Investors are intensely focused on Warsh's post-meeting press conference for major shifts in central bank strategy, as the new chair has previously advocated for scaling back the Fed's forward guidance, reducing public media appearances, and potentially eliminating the closely watched "dot plot" of economic projections.
323 Articles
323 Articles
The new head of the US Federal Reserve, Kevin Warsh, has been under maximum pressure from the start. But most critics agree that he came out of his first interest rate meeting well.
The Federal Reserve did yesterday what the market discounted with a probability close to 97%: it kept the federal fund rate unchanged, in the range of 3.50 to 3.75%, its fourth consecutive pause, this time by unanimous vote. The news was not that it remained unchanged. The relevant thing was everything else. It was the first meeting chaired by Kevin Warsh, who took protest on May 22 as the seventeenth holder of the US central bank, and his debut…
Kevin Warsh was Donald Trump's wish candidate at the top of the Fed. He has been one of the biggest critics of the Central Bank for years. Now he leaves the interest rates unchanged, and plans a few major changes.
Kevin Warsh faces first rate decision as Fed Chair
Kevin Warsh and the board of the Federal Reserve must decide on changing or holding the rate that has a huge impact on the economy. Between rising inflation and political pressures, it’s a big first test, as CGTN's Owen Fairclough reports.For more, check
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