15:28 - 18.06.2026
June 18, Fineko/abc.az. The first meeting of the US Federal Reserve System (FRS) was held under the chairmanship of the new head Kevin Warsh. Following the meeting, the regulator kept the interest rate at 3.50–3.75%, but sent tough signals to the markets.
ABC.AZ informs that the main theses and economic markers of the meeting were distributed as follows:
1. The increase in the probability of a rate hike: The dot plot showed that FOMC members were divided in their opinions. The median forecast indicates the possibility of another rate hike by 25 basis points before the end of this year.
2. The intrigue of Warsh's forecast: The new head of the Federal Reserve confirmed that he did not disclose his personal expectations for rates in the framework of the macroeconomic report, as he is skeptical about the practice of strict long-term forecasting.
3. Reforms within the Fed: It has announced the creation of 5 working groups that will study the effectiveness of communications, the balance sheet structure, approaches to inflation and the impact of artificial intelligence.
4. Uncompromising fight against inflation: Kevin Warsh's rhetoric about ensuring "price stability" was perceived by investors as extremely "hawkish", which dampened hopes for an early easing of monetary policy.
5. New statement format: The text of the Fed's final communique has been shortened from the traditional 300+ words to a concise 130 words, eliminating unnecessary ambiguous interpretations.
