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.
Analysts at UBS Global Wealth Management expect the Fed to adopt a more hawkish tone despite Warsh's previously dovish views. The analysts believe that interest rates will be on hold through 2026. UBS now forecasts two 25-basis-point reductions in March and June 2027. Other analysts also expect the Fed to leave the rates unchanged, Reuters reported.
The meeting comes after the US President Donald Trump announced a preliminary agreement with Iran to end their conflict. This has eased geopolitical concerns and provided some support to global financial markets.
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: June FOMC Meeting Date And Time
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). However, he is not required to continue the practice. Before Jerome Powell, Fed chairs held press conferences only quarterly, while former chair Alan Greenspan did not hold regular media briefings at all.
Where To Watch US Fed Chair Kevin Warsh Conference?
The press conference following the meeting will be streamed live on NDTV Profit's YouTube channel. The Federal Reserve will also livestream the press conference on its official platforms, allowing the public and investors to tune in. You can watch the streaming on Federal Reserve YouTube channel.
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