WASHINGTON, DC - MAY 22: Kevin Warsh (L) takes the oath of office from U.S. Supreme Court Associate Justice Clarence Thomas (R) as his wife Jane Lauder looks on during his swearing-in ceremony to be the new Chairman of the Federal Reserve in the East Room of the White House on May 22, 2026 in Washington, DC. Warsh succeeds Jerome Powell, who served as Chair for eight years. (Photo by Roberto Schmidt/Getty Images)Getty ImagesKevin 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 SignalsWith 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 see a good chance that rates remain steady. What appears less likely, for now, is the prospect of interest rate cuts.At the June meeting, the FOMC may choose to move away from the prospect of near-term interest rate cuts in favor of more neutral or even hawkish language on interest rates.How Warsh May Shift Fed CommunicationsAside from the clues on rate moves in 2026, the meeting may prove more significant for how Warsh elects to handle the broader topic of FOMC disclosures on future interest rates. During his testimony and in other speeches, Warsh has noted that he prefers central banks to avoid the commitments that detailed forward guidance entails. This is when the Fed projects where interest rates might move beyond the current meeting. Currently, the FOMC provides detailed economic projections at every other meeting (with projections expected at the June meeting), the chair hosts a press conference at each meeting, and the policy statement typically includes some forward-looking language.MORE FOR YOUWarsh may not make changes immediately, in part because he must get buy-in from others, but he may provide some clarity on how he expects Fed disclosures to trend.ForbesWarsh Signals A New Fed Playbook As Confirmation NearsBy Simon MoorePowell And Cook’s Roles Still In FluxWe may also learn more about the role of Jerome Powell and Lisa Cook on the Monetary Policy Committee in the coming weeks. For now, Powell has elected to remain on the FOMC despite no longer serving as chair. This is unusual and responds to the legal attacks on him from the Trump administration. This legal action appears to have ended, but Powell likely wants strong confirmation that that’s indeed the case. Some messaging from the Trump administration on this topic has been ambiguous. To the extent that Powell remains on the FOMC, he prevents Trump from nominating anyone to replace him. However, Powell’s term as a Fed governor would end January 2028 even if he chose to remain on the FOMC as long as possible.The second legal topic concerns Cook. Trump attempted to fire Cook, but courts have challenged his ability to do so. The Supreme Court has heard oral arguments and is expected to issue an opinion on the topic within weeks. If Cook is fired, that would open another vacancy on the FOMC for Trump to fill. However, most expect the Supreme Court to block Cook’s potential firing, in part as a way to protect an independent Fed.What Investors Should WatchThe June Fed meeting should provide some color on if and when the Federal Reserve might raise interest rates in 2026. Markets currently view hikes as possible but far from certain. Beyond that, the meeting may give Warsh a chance to signal his intentions for the FOMC’s processes and how he might look to refine them. Plus, any news relating to Powell and Cook’s positions on the FOMC may also affect Trump’s ability to nominate further Fed governors during his term as president.