FED CHAIR KEVIN WARSH JUST MADE IT CLEAR: THE FIGHT AGAINST INFLATION IS NOT OVER.
Key points from the FOMC press conference:
• The Fed held rates in a 9–3 vote after a heated internal debate.
• Warsh said inflation is still too high and the 2% target is non-negotiable.
• The Fed is pulling back from forward guidance and will let markets react directly to incoming data.
• Treasury yields have already tightened financial conditions, even without another rate hike.
• One soft CPI report will not change policy. The Fed is focused on the broader trend.
• The economy and labor market remain solid, while AI investment is driving a major surge in business spending.
• A hold does not mean the Fed has paused. Warsh called it “watchful thinking.”
• If inflation rises while employment stays strong, the Fed will be more inclined to tighten again.
The message was simple:
The Fed is not declaring victory, and rate hikes are still on the table.
#FOMCWatching
Key points from the FOMC press conference:
• The Fed held rates in a 9–3 vote after a heated internal debate.
• Warsh said inflation is still too high and the 2% target is non-negotiable.
• The Fed is pulling back from forward guidance and will let markets react directly to incoming data.
• Treasury yields have already tightened financial conditions, even without another rate hike.
• One soft CPI report will not change policy. The Fed is focused on the broader trend.
• The economy and labor market remain solid, while AI investment is driving a major surge in business spending.
• A hold does not mean the Fed has paused. Warsh called it “watchful thinking.”
• If inflation rises while employment stays strong, the Fed will be more inclined to tighten again.
The message was simple:
The Fed is not declaring victory, and rate hikes are still on the table.
#FOMCWatching