Fed Holds Rates at 3.50%-3.75% in Warsh's First Meeting

The Federal Reserve has held its benchmark fed funds rate steady at 3.50%-3.75% in the first policy meeting led by new Chairman Kevin Warsh.

The decision matched near-unanimous market expectations. The Fed left the rate range unchanged on June 17, 2026, according to CoinDesk, Reuters and CBS News. CNN reports the vote was unanimous and the statement removed prior easing bias.

Warsh took over as chair from Jerome Powell after Senate confirmation last month. This marks his debut at the helm of the central bank.

Attention shifts to Warsh's debut press conference. The session begins at 2:30 p.m. ET on June 17. Traders seek clues on how the central bank's communication will change under his leadership, per the CoinDesk report and corroborating coverage from Reuters and CBS News.

Warsh has previously criticized the Fed's use of forward guidance and quarterly economic projections, including the dot plot. Investors will watch for signs the central bank plans to communicate policy differently.

Rate-cut expectations have faded in recent months. Markets have steadily dialed back bets on easing as inflation proved more stubborn and labor market data remained resilient, CoinDesk reports. CNN notes the dot plot shows nine officials see at least one rate hike this year, with six seeing multiple hikes, amid inflation tied to Iran war and energy shocks.

Traders now see a growing chance the Fed's next move could be a rate hike rather than a cut. Markets reacted with higher yields following the announcement, according to CNN.

The outcome carries added weight given Warsh's views. His comments on the road ahead will be scrutinized for any shift in approach. The press conference is expected to provide the first direct signals on policy communication under the new chairman.