Kevin Warsh chaired his first Federal Open Market Committee (FOMC) meeting in June and left no doubt where his priorities lie. The Committee held rates at 3.50% to 3.75%, but the messaging carried a hawkish tilt. Warsh cut the policy statement to a third of its length, pledging the Committee “will deliver price stability” while dropping the customary reference to maximum employment. He told reporters the Committee’s commitment was “strong, unanimous and unambiguous,” acknowledging inflation has run above the Fed’s 2% goal for more than five years. The Summary of Economic Projections reinforced the shift with the median dot now implying a rate hike by year-end, erasing the cut they had projected in March.
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