Federal Reserve holds interest rates steady, but three members voted to raise rates.
Summary of Fed Chair Warsh’s Statement
1. The US economy continues to demonstrate “impressive resilience.”
2. Inflation remains above the Federal Reserve’s 2% target.
3. The latest policy statement focuses strictly on current facts and avoids offering forward guidance.
4. The Fed does not have a flexible or “soft” inflation target—the official target remains firmly at 2%.
5. Both nominal and real yields have risen materially since the previous Fed meeting.
6. Market participants are increasingly learning to respond to economic fundamentals rather than relying on signals from the Fed.
Once again, the Federal Reserve has chosen not to provide clear guidance on the future path of monetary policy.
Summary of Fed Chair Warsh’s Statement
1. The US economy continues to demonstrate “impressive resilience.”
2. Inflation remains above the Federal Reserve’s 2% target.
3. The latest policy statement focuses strictly on current facts and avoids offering forward guidance.
4. The Fed does not have a flexible or “soft” inflation target—the official target remains firmly at 2%.
5. Both nominal and real yields have risen materially since the previous Fed meeting.
6. Market participants are increasingly learning to respond to economic fundamentals rather than relying on signals from the Fed.
Once again, the Federal Reserve has chosen not to provide clear guidance on the future path of monetary policy.
