US Fed Meeting Live Updates: Wall Street Rises Ahead Of New Chair Kevin Warsh's First FOMC

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. 

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.

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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. 

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.

• 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

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.

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.