Fed holds rates, signals future hikes under new Chair Warsh
The Federal Reserve kept interest rates steady for a fourth meeting under new chair Kevin Warsh, but the statement suggests more rate hikes may come if inflation stays high. Warsh, who just started as chair, appears to prefer a more rules-based and balance-sheet-shrinking approach compared to his predecessor. Forecasts suggest inflation may peak soon before easing, while economic growth projections are mixed. The Fed is waiting for more data on inflation and growth before deciding on future policy. Markets and businesses may need to prepare for possible increases in borrowing costs later in the year if inflation does not cool.
