The Federal Reserve System held its benchmark interest rate steady at 3.5%-3.75% for the fourth consecutive meeting in a unanimous decision. The Fed raised its median 2026 rate projection to 3.75% from 3.375% earlier and lifted the 2027 rate forecast to 3.625% from 3.125%, signalling a higher-for-longer rate outlook. The central bank cut its 2026 GDP growth forecast to 2.2% from 2.4% and raised its core PCE inflation projection to 3.3% from 2.7%. Fed officials said economic activity remains solid, while inflation remains elevated partly due to supply shocks. Kevin Warsh announced five task forces to review areas including communications, balance sheet policy, data sources, productivity and jobs, and inflation frameworks, while noting that the Fed has moved away from forward guidance. He said markets perform best when responding to incoming data rather than anticipating Fed actions.
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'It Is All Right': Trump Backs Fed's Decision
In a drastic shift from his original stance, US President Donald Trump has not only backed Federal Reserve's decision to hold key lending rates on Wednesday, but also hinted that he was okay with the prospect of a rate hike in the future under Kevin Warsh.
Trump, who is currently attending the G7 summit happening in France, said that the Federal Reserve System’s decision to hold interest rates steady was “alright," despite his rather aggressive calls for rate cuts in the past. Addressing concerns related to nine of the FOMC members projecting a rate cut in 2026, Trump said, "it could happen."
Fed's New Drop Is Not For Rates... But Forward Guidance
In a significant departure from recent monetary policy norms, newly appointed Federal Reserve Chairman Kevin Warsh used his debut press conference to announce that the central bank is officially dropping "forward guidance."
Speaking shortly after the Fed opted to hold interest rates steady amid rising global headwinds, Warsh flatly refused to telegraph the central bank's next moves. "Agreed forward guidance is not well suited to this juncture," Warsh stated, confirming that he cannot offer any roadmap for what the Fed will do next.
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Warsh Says Fed Has Given Markets A “New Chapter” As Investors Digest Policy Changes
Kevin Warsh said the Federal Reserve System has given markets a “new chapter” for the central bank, adding that financial markets will need time to digest the changes.
Warsh said he would not be closely focused on market reactions for several days, noting that the Fed cannot have a significant impact on particular prices.
US Markets Edge Lower After Fed Holds Rates; S&P 500 Falls 0.36%
Dow Jones Industrial Average edged lower by 48.53 points to 51,951.14, declining 0.09%.
S&P 500 slipped 27.06 points to 7,484.29, down 0.36%.
Nasdaq Composite edged down 58.06 points to 26,318.28, falling 0.22%.
Warsh Says Markets Perform Best On Incoming Data, Not Fed Policy Projections
Kevin Warsh addressed concerns related to market volatility in the backdrop of no forward projections and said that financial markets perform the best with incoming data, not when they pencil in what Federal Reserve will do with that.
Rate Hike Projections Out Of Humility, Do Not Indicate Future Fed Actions, Says Warsh
Kevin Warsh said the Federal Open Market Committee does not feel bound by rate projections, adding that submitting his own dot plot projection was not helpful for the conduct of monetary policy.
Warsh said the committee’s rate projections should not be viewed as a commitment to future policy actions.
Will Warsh Continue To Have Press Conferences? Maybe...
Addressing queries on whether or not there will be more press conferences, Kevin Warsh said that there will be a press conference if there is something important to say.
Referring to the change in Fed's language, he added that he expects m'ore changes to come, some of what might be worthy of a press conference."
Warsh Says Cannot Provide Any Forward Guidance On Next Policy Actions
Kevin Warsh said the Federal Reserve System has moved away from providing forward guidance, adding that some policymakers felt such guidance was not appropriate at the current juncture.
Warsh said he could not provide any forward guidance on the Fed’s next policy actions. He also noted that the level of monetary policy restriction is uneven.
'Not Gonna Revisit 2% Inflation Target': Kevin Warsh
Addressing a question on the Federal Reserve's long-held 2% inflation target, Warsh said since he tends to look towards the left of the decimal point and there was no need to visit this target.
US Fed Meeting Live: What Will These Task Forces Do?
Kevin Warsh said the communications task force is expected to recommend changes to the Summary of Economic Projections (SEP).
He said the balance sheet task force will review the Fed’s ample reserves regime, while the productivity task force will examine the impact of artificial intelligence (AI) on productivity growth.
Warsh added that the inflation task force will study the key drivers behind inflation. He expects the task forces to begin work within the next few weeks, with most or all reviews likely to conclude by the end of the year.
US Fed Meeting Live: Warsh Appoints Five Task Forces To Review Key Monetary Policy Areas
He also announced the formation of task forces to review five key areas of monetary policy, including communications, the balance sheet, data sources, productivity and jobs, and inflation frameworks.
'Refrained From Submitted My Own Projection': Warsh
Kevin Warsh said the leadership change at the Federal Reserve System presents a timely opportunity to review existing practices.
Warsh said he encouraged colleagues to continue submitting economic projections but chose to refrain from submitting projections of his own.
Fed Remove Language Suggesting Future Rate Cuts; Delves Into Only Facts
Kevin Warsh said that FOMC has agreed that the use of language including forward guidance is not well suited for the current juncture
Inflation Running Well Ahead Of Fed's Target Of 2%
Kevin Warsh addresses rising inflation, says aware that it is well ahead of Fed's target of below 2%
US Fed Meeting Live: Fed Hikes Interest Rate Projection For 2027
The Federal Reserve System raised its median interest rate projection for 2027 to 3.625% from 3.125% earlier, signalling expectations for rates to remain higher for longer.
US Fed Meeting Live: Fed Raises Core Inflation Projections
The Federal Reserve has raised projection for its preferred inflation gauge Core PCE 2026 to 3.3% from 2.7% amid continued concerns over elevated price pressures.
US Fed Meeting Live: FOMC Hikes Median Interest Rate Projection
The Federal Reserve System raised its median 2026 interest rate projection to 3.75% from 3.375% earlier, signalling a higher-for-longer rate outlook. The median 2027 rate projection was also lifted to 3.625% from 3.125% previously.
Fed Lowers Median GDP Projection
The Fed lowered its median 2026 GDP growth projection to 2.2% from 2.4%, while raising its core inflation forecast.
FOMC Decision Live: 'Economic Activity Expanding At Solid Pace', Says Fed
"The Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent, in support of the Federal Reserve's dual mandate. The Committee reaffirmed its policy of maintaining ample reserves in the banking system.
Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East. Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little.
Inflation remains elevated relative to the Committee's 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. The Committee will deliver price stability."
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(Source: Federal Reserve Statement)
US Fed Meeting Live: Rate Hike On Cards?
Nine out of 18 participants at the Federal Open Market Committee projected at least one interest rate hike in 2026, indicating a divided outlook on the future path of monetary policy.
US Fed Meeting Live: FOMC Verdict Out!
The Federal Reserve has yet again held interest rates unchanged at 3.5%-3.75% in a unanimous decision, maintaining its current policy stance.
US Fed Meeting Live: Key Highlights Of Powell's Last Fed
Fed chair Jerome Powell addressed a press conference shortly after the decision came out, during which he flagged "misbehaving inflation", Donald Trump's tariff impact on prices of goods, resilience of the US economy, and his decision to remain on the Fed board as a governor.
Take a look at key highlights here: 'No Shadow Fed Chair' To 1992-Style Fracture: Five Things Jerome Powell Said In Exit Briefing
US Fed Meeting Live: When Was The Last Rate Hike?
The Federal Reserve last hiked interest rates on July 26, 2023, when the FOMC raised the target range for the federal funds rate by 25 basis points to 5.25%–5.50%. Since that time, the Fed has held rates steady and initiated a rate-cutting cycle
US Fed Meeting Live: FOMC To Announce Decision Shortly
The Federal Reserve will soon announce its decision regarding key lending rates.
US Fed Meeting Live: Wall Street Check
- S&P 500 down 0.04% at 7,507.76
- Dow Jones up 0.22% at 52,114.86
- Nasdaq Composite up 0.04% 26,385.24
US Fed Meeting Live: Trump Versus Federal Reserve
Warsh's term is expected to turn the spotlight on the autonomy of the Federal Reserve, in face of Trump repeated efforts to intervene and influence rate cut decisions.
US Fed Meeting Live: All You Need To Know About New Fed Chair Kevin Warsh
A Fed veteran, Warsh earlier served during the critical period from 2006 to 2011, spanning the global financial crisis as well as the Central bank's efforts to stabilise the economy. Appointed by President George W Bush, Warsh was among the youngest individuals ever to serve on the Fed's Board of Governors.
Warsh completed his graduation from Stanford University. He then earned a law degree from Harvard. Before becoming a part of Fed, he was in investment banking at Morgan Stanley. He served in the White House during the Bush administration as a special assistant to the President on economic policy.
In recent times, Warsh has aligned closely with Trump's views on lower interest rates. But he remains popular for his hawkish monetary stances and could hold rates steady if inflationary pressures mount.
Read more here.
US Fed Meeting Live: Wall Street Remains On Edge Ahead Of Decision; Here's How It Opened
Wall Street remained largely steady ahead of the Fed meet decision slated for later in the day on Thursday. S&P 500 and Dow Jones remained little changed, while tech-heavy Nasdaq Composite edged higher as stocks recovered from their rout.
S&P 500 opened 0.9% higher at 7,524.50, Dow Jones was stable at 52,013.52 after a record high closing in the previous session, and Nasdaq was up 0.46% at open to 26,493.82.
Read more here.
What Happened In The Last Fed Meet?
In what was Jerome Powell's final rate decision, the US Federal Reserve decided to keep interest rates unchanged. Federal Open Market Committee kept its benchmark rate unchanged at 3.50%-3.75%, just hours after Powell's successor Kevin Warsh won the backing of a key Senate committee.
The Fed's decision to keep rates unchanged came against the backdrop of a volatile geopolitical scenario as well as US' active involvement in the Iran War, which has driven energy prices higher.
US Fed Meeting Live: Wall Street Check
- S&P 500 down 0.14% at 7,501.08
- Dow Jones up 0.24% at 52,128.98
- Nasdaq Composite 0.25% 26,306.81
US Fed Meeting Live: What To Expect From Warsh?
The new Federal Reserve chair is expected to gradually reshape the central bank's communication strategy. Warsh has long criticised detailed forward guidance on interest rates. According to Reuters, Warsh argued that it limits the Fed's flexibility when economic conditions change.
Reuters report added that under Warsh, Fed may remove language suggesting future rate cuts, reflecting both Warsh's preferences and the possibility of rate hikes later this year.
Warsh has also expressed concerns that the Fed communicates too much through press conferences, economic projections, and frequent speeches by policymakers. It remains to be seen if he will be able to introduce these changes to the existing format of how the institution functions.
US Fed Meeting Live: Dow Jones Rises Ahead Of FOMC Decision
The Wall Street had a largely muted start on Wednesday. S&P 500 and Dow Jones remained little changed, while tech-heavy Nasdaq Composite edged higher as stocks recovered from their rout.
S&P 500 opened 0.9% higher at 7,524.50, Dow Jones was stable at 52,013.52 after a record high closing in the previous session, and Nasdaq was up 0.46% at open to 26,493.82.
Later, Dow Jones rose 0.41% to 52,230.55.
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