The United States Federal Reserve is expected to keep interest rates unchanged at the end of its key June 16-17 gathering. This will be the first Fed Federal Open Market Committee (FOMC) meeting under new Chair Kevin Warsh. Investors will closely watch the Fed's statement, economic projections and Warsh's remarks for clues on the future path of monetary policy.
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.
Fed may remove language suggesting future rate cuts, reflecting both Warsh's preferences and the possibility of rate hikes later this year.
The FOMC's latest statement will be released at 2 p.m. EDT or 11:30 p.m. (IST) on Wednesday, June 17. Fed Chair Kevin Warsh is scheduled to hold his post-meeting press conference at 2:30 p.m. EDT on Wednesday or 12:00 a.m. (IST) (June 18).
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.
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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.