New Fed Chair Kevin Warsh faces his first policy meeting with inflation risks rising and markets scrutinizing his approach to rate cuts.
The Federal Reserve is set to keep interest rates unchanged at 3.5%-3.75% following its two-day meeting, marking Kevin Warsh’s first decision as chair. The move comes as central banks globally grapple with persistent inflation and growth uncertainties tied to energy shocks from the Iran conflict.
In March, Fed officials projected just one rate cut in 2026, a signal of prolonged tight policy. Markets will parse Warsh’s debut press conference and the updated dot plot for clues on future moves, particularly his divergence from Jerome Powell’s communication style, including less frequent press briefings.
Investors are watching for signs of internal Fed division as Warsh, an advocate of Alan Greenspan’s approach, navigates a high-inflation environment. The Summary of Economic Projections will offer further insight into policymakers’ outlook for the remainder of the year.