Fed Chair Kevin Warsh leads FOMC meeting amid heightened inflation concerns

The Federal Reserve’s Federal Open Market Committee met for two days, marking the first press conference of new Chair Kevin Warsh. Markets largely anticipated that the Fed would leave its benchmark rate unchanged at 3.50%‑3.75%, viewing the meeting as a potential catalyst for risk assets such as equities and cryptocurrencies. However, the post‑meeting statement revealed that almost half of the committee members now signal support for further rate hikes this year, a sharp shift from the March outlook where no members expected increases and a rate cut was projected for 2026.

Warsh emphasized the Fed’s commitment to returning inflation to its 2% target and noted that the committee provided no forward guidance on future policy moves. He also announced the formation of working groups to review policy communication, data quality, and inflation modelling, signaling a focus on consensus‑building rather than unilateral action.