Warsh resets the Fed: hawkish hold, missing dot, cuts pushed to 2027
Unanimous hold, but with a distinctly hawkish pivot. The Fed unanimously held rates at 3.50%–3.75%, as expected. Unlike the divided committee of recent meetings, this unanimity reflects broad agreement that inflation risks now outweigh growth concerns. With no dovish dissent and a hawkish shift in tone, the Fed has moved from debating when to cut rates to debating how long restrictive policy should last.
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