Fed keeps interest rates unchanged, but Kevin Warsh's hawkish signals, reform plans and inflation focus rattled markets and raised uncertainty.

The Federal Reserve is expected to hold rates at 3.50%-3.75% at its June meeting, with 96% probability. New chair Kevin Warsh faces his first FOMC decision.

The US Federal Reserve is expected to leave interest rates unchanged at its policy meeting on Wednesday, the first under new Fed Chair Kevin Warsh. Markets are pricing in a pause,…