Warsh's first Fed meeting as rate decision nears

It's the fourth Fed day of the year, and new Chair Kevin Warsh is taking the helm as the Federal Open Market Committee meets. With inflation at 4.2% in May — its highest point since 2023 — the committee is expected to keep interest rates steady. Markets are almost certain of a hold: CME FedWatch shows a near-total chance of a pause, a 0.4% chance of a hike, and no probability of a cut.

Keeping rates relatively high could help temper inflation but risks slowing the job market, forcing the FOMC to weigh its dual mandate. Warsh, a longtime Wall Street executive and former Fed governor, was nominated by President Donald Trump in January and initially faced an uphill confirmation battle.

North Carolina Sen. Thom Tillis and other lawmakers had opposed his candidacy amid a federal investigation into predecessor Jerome Powell; Warsh was confirmed in May after the Department of Justice indicated it would drop the case. The meeting and Warsh's first press conference will set the tone for a new era at the central bank.

United States

kevin warsh, fomc, inflation, interest rates, cme fedwatch, rate pause, job market, dual mandate, donald trump, jerome powell