Kevin Warsh’s first meeting as Federal Reserve chair this week gives investors their earliest read on how he intends to steer policy and communicate the path for interest rates. With markets split on whether hikes could materialize later in 2026, the June 16–17 gathering may clarify both the near‑term rate outlook and how Warsh plans to reshape the Fed’s approach to signaling future moves.

The Federal Open Market Committee is strongly expected to hold interest rates steady, but markets will be looking for clues on potential interest rate hikes later in the year. In addition, Warsh may refine aspects of how the Fed communicates future policy to markets.

Near-Term Monetary Policy Signals

With inflation above target and the job market appearing to perform well, the FOMC may contemplate an interest rate increase later in 2026. Fixed-income market expectations see a hike as possible at some point in September or later. That said, markets also........

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