Review: The FOMC Keeps Rates on Hold, As Warsh Revamps The Federal Reserve

In this paper, we discuss:

• The Fed’s decision to keep interest rates unchanged at 3.50%–3.75% while adopting a more hawkish policy stance.
• How Kevin Warsh used his first meeting as Chair to begin overhauling the Fed’s communications framework.
• How higher inflation forecasts and a hawkish dot plot have increased the likelihood of a rate hike later this year.
• Why markets interpreted the meeting as a shift toward greater data dependence and a stronger focus on inflation credibility.

Download PDF: Fed Review June 2026