https://www.cnn.com/2026/06/17/business/live-news/federal-reserve-interest-rate-kevin-warsh
The recent Federal Reserve meeting, chaired by Kevin Warsh for the first time, held the policy rate steady at 3.5%–3.75% but indicated a more hawkish direction than markets had anticipated. According to CNBC, this shift was notable as nine Fed officials projected at least one rate hike within the year, a significant change from March when no such projections were made. The Fed’s statement also withdrew forward guidance on future moves, causing Treasury yields to rise and risk assets to sell off. This development suggests markets are adjusting to the possibility of tighter monetary policy under Warsh’s leadership.
The hawkish stance from the Fed has implications for various markets, including cryptocurrencies and commodities. Ethereum’s market pricing indicates a potential downturn, with the likelihood of it staying above $1,200 decreasing slightly. Similarly, gold, traditionally seen as a hedge against inflation, may see its appeal diminish with higher interest rates, as market participants adjust their expectations for its price in the near term. The prospect of no rate cuts in 2026 has also increased, reflecting a focus on inflation control.
