Federal Reserve holds rates steady in first decision under Chair Kevin Warsh

The Federal Reserve left its benchmark fed funds rate range unchanged at 3.50%-3.75% on Wednesday, a move markets had expected nearly unanimously.

This was the first U.S. central bank policy meeting led by Kevin Warsh, who took over as chair from Jerome Powell after being confirmed by the Senate last month.

The focus now shifts to Warsh’s post-meeting press conference, beginning at 2:30 p.m. ET, and to what he says about the road ahead under his leadership at the central bank.

Markets have spent the past several months steadily dialing back expectations for any rate cuts as inflation proved more stubborn and labor market data remained resilient. Traders now see a growing chance that the Fed’s next move could be a rate hike rather than a cut.

Warsh’s comments could carry added weight because he has previously criticized the Fed’s use of forward guidance and quarterly economic projections, including the closely watched dot plot.

Investors will be looking for signs of whether the central bank plans to communicate policy differently under his leadership.