Fed holds rates steady in first decision under new Chairman Kevin Warsh
The accompanying policy statement and updated economic projections, however, took a hawkish turn.
By Krisztian Sandor|Edited by Stephen Alpher
Updated Jun 17, 2026, 6:23 p.m. Published Jun 17, 2026, 5:52 p.m.
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- The Federal Reserve left its benchmark federal funds rate unchanged, but signaled a tilt toward hiking rates later this year. - Policymakers now project higher interest rates through at least 2028, expecting stickier inflation for this year. - Bitcoin and major U.S. stock indexes slipped after the decision, as investors turned their focus to new Fed Chair Kevin Warsh’s first post-meeting press conference and potential shifts in communication strategy.
The Federal Reserve left its benchmark fed funds rate range unchanged at 3.50%-3.75% on Wednesday, a move markets had expected nearly unanimously.
"Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East," the press release said. "Inflation remains elevated relative to the Committee's 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy."
"The Committee will deliver price stability," it added.
Policymakers are increasingly lean towards a rate hike this year, expecting the fed funds rate at 3.8% at the end of 2026, versus a 3.4% in the March projection. Easier monetary policy will not come anytime soon as they expect rates at 3.6% for 2027 and 3.4% in 2028, both higher than their previous guidance.
They also see higher inflation, with personal consumption expenditure (PCE) rising 3.6 this year and core PCE inflation at 3.3%, compared to a forecast of 2.7%-2.7% in March.
Trading around $66,000 earlier, bitcoin BTC$64,638.38 fell to $64,800 in the minutes following the decision, and recently stabilized around $65,300. The S&P 500 and Nasdaq 100 both dropped nearly 1%, erasing earlier gains.
This was the first U.S. central bank policy meeting led by Kevin Warsh, who took over as chair from Jerome Powell after being confirmed by the Senate last month.
The focus now shifts to Warsh's post-meeting press conference, beginning at 2:30 p.m. ET, and to what he says about the road ahead under his leadership at the central bank.
Markets have spent the past several months steadily dialing back expectations for any rate cuts as inflation proved more stubborn and labor market data remained resilient. Traders now see a growing chance that the Fed's next move could be a rate hike rather than a cut.
Warsh's comments could carry added weight because he has previously criticized the Fed's use of forward guidance and quarterly economic projections, including the closely watched dot plot.
Investors will be looking for signs of whether the central bank plans to communicate policy differently under his leadership.
Bitcoin$64,647.031.80%
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CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
By CoinDesk Research
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
Fidelity joins Wall Street's race to manage stablecoin reserves
BitGo stock surges on $50 million share buyback as value languishes 65% below IPO price
Kevin Warsh's first Fed meeting could be more about communication than rates
Kentucky targets prediction markets, puts red state in potential clash with Trump team
Fidelity joins Wall Street's race to manage stablecoin reserves
Here is how Coinbase plan to survive the crypto downturn by ditching its reliance on trading fees
