Kevin Warsh led his first presser as Chair of The Fed on Wednesday, June 17, 2026.
Gold and Bitcoin prices tanked as Warsh's inaugural speech sent bearish signals for risk assets.
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Key Market Points from FOMC Debut of Warsh
After deciding to hold interest rates, the key takeaway from his presser, besides refusing to give forward guidance, is:
Regarding decisions and the economy:
“This week's FOMC meeting reflects the best traditions of The Fed: intense debate, open minds, commitment to the mission, responsibility, and accountability for performance… Managing monetary policy correctly — or as close to it as possible. That is our main guiding principle.”
The committee maintains the federal funds target rate range at 3.50%–3.75%.
Economic activity is "growing at a solid pace," supported by strong productivity, high capital investment, and a stable labor market, but the inflation rate has been above 2% for over five years.
On the commitment to maintain price stability:
"I am pleased to report that FOMC members unanimously and firmly state that this committee will maintain price stability."
About the new, shorter policy statement:
"The statement is indeed a bit shorter, simpler, and omits some outdated terms. It just provides the facts, according to our best judgment."
"Also, there’s no such thing as forward guidance, which we agreed does not fit the current policy conditions."
Regarding the dot plot/SEP:
"It has become customary for committee participants to provide projections, and I encourage my colleagues to continue doing so. However, I do not provide personal projections myself."
Median projections indicate a slightly higher interest rate path, with nine officials anticipating at least one rate hike in 2026.
On the five working groups (communication, balance sheet, data sources, productivity/labor/AI, inflation framework):
"These topics are very relevant, important, and I think worth revisiting... They will clearly have the task: to pose tough questions, review current practices, and consider alternatives."
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"Each working group will have the same goals for all... The Federal Reserve will clearly have its mission, ready for objectives, and focused on the future."
Key Quote Q&A
Regarding the 2% inflation target:
"That’s the Federal Reserve's long-term goal of 2%. 'Two' is to the left of the decimal point. For now, 'zero' is to the right."
"I see no reason to change it unless we have restored the commitment and ability to maintain the 2% inflation target."
Regarding internal decision-making ('family debate'):
"We can agree on some recommendations; not on others, even debating healthily like family. But the outcome — I believe and hope — will make our discussions much better, stronger, and more dialectical, so we can ultimately achieve our price stability goals."
On inflation as choice/commitment:
"The commitment to achieve that is very strong, clear, and agreed upon, and I think that’s an important message we’ve missed over the last five years, and we will correct it."
Warsh emphasizes data dependence, reducing forward guidance, and letting the market react to data rather than signals from The Fed.
He avoids locking in future interest rate direction and chooses to focus on long-term institutional improvements.