Federal Reserve Chairman Kevin Warsh speaks after Fed holds interest rates steady — 6/17/26

Summary

New Fed Chair Kevin Warsh held his first FOMC meeting, keeping rates unchanged at 3.50-3.75%. He introduced a shorter statement without forward guidance and announced five task forces to review communications, the balance sheet, data, productivity/AI, and inflation frameworks. Warsh expressed a unanimous commitment to achieving 2% inflation and voiced a long-term conviction that the US will benefit greatly from AI.

• FOMC unanimously held the federal funds rate at 3.50-3.75%.
• Forward guidance was removed and the policy statement was shortened.
• Five task forces were announced to modernize Fed communications, balance sheet policy, data sources, productivity/jobs analysis, and inflation frameworks.
• Warsh pledged the committee will deliver price stability after five years of above-2% inflation.
• Current policy stance is uneven: restrictive in housing but not in financial markets.
• Warsh expressed long-term bullishness on the US economy, driven by AI's potential to enhance American ingenuity and economic output.
• He did not submit his own economic projections, saying the dot plot may be reformed later this year.