Kevin Warsh just held his first FOMC meeting as Federal Reserve Chair, and the message was clear: inflation is enemy number one. The committee voted unanimously on June 17, 2026, to keep the federal funds rate at roughly 3.6%, but the real story is what comes next.
Warsh used his inaugural press conference to reassure investors that he will not let inflation spiral further, pledging a “resolute commitment” to price stability after the Fed has missed its 2% target for five consecutive years.
The numbers tell a hawkish story
Inflation currently sits at 4.2%, the highest reading in three years. Surging energy prices, driven by geopolitical tensions, are doing most of the heavy lifting on that number.
Back in March, markets were pricing in rate cuts. Now, nine out of eighteen Fed policymakers are projecting at least two 25 basis point rate hikes before the end of 2026.
