Fed Holds Rates Steady as Warsh Strikes Hawkish Tone at First Press Conference

The Federal Reserve (Fed) opted to keep interest rates unchanged at 3.50%-3.75% during its latest policy meeting on Wednesday. The decision was widely anticipated, but the accompanying updated economic projections drew market attention.

In his first press conference as Fed chair, Kevin Warsh struck a hawkish tone and outlined a commitment to institutional reform. The remarks suggest a potential shift in the central bank's forward guidance, though no immediate policy changes were announced.

The dollar saw modest gains following the comments, as traders interpreted the stance as supportive of tighter monetary policy in the coming months.