Fed Holds Rates at 3.5%-3.75% in Warsh's First Meeting as Committee Remains Divided

According to Kitco News, the Federal Reserve held interest rates steady in a range of 3.5% to 3.75% on Wednesday in Kevin Warsh's first meeting as chair, but released projections revealing deep committee divisions over rate policy. Nine of 18 officials projected at least one rate hike in 2026, while the other nine expected no change or cuts. The Fed removed its previous signal that cuts were coming and pledged to deliver price stability. The two-year Treasury yield jumped about 10 basis points to 4.15%, marking its largest move on a Fed day since January 2022. The dollar rose while gold fell 2.2% to roughly $4,236 per ounce. The S&P 500 dropped as much as 0.5% before paring losses. Warsh also announced task forces to review the Fed's communications, balance sheet, and inflation framework by year-end.
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