FED Chair Kevin Warsh is Speaking After the Interest Rate Decision – LIVE

Federal Reserve Chairman Kevin Warsh is holding a press conference following the decision to keep interest rates unchanged.

Here are the most important parts of Warsh’s statements:

• This meeting reflects the best traditions of the Federal Reserve.
• The goal is to implement monetary policy correctly.
• My colleagues and I are here to fulfill our legal duties.
• The mandate given to us by Congress to achieve price stability and full employment guides our meetings.
• Economic activity is expanding at a steady pace.
• Inflation is well above the 2% target.
• Continuously high prices are a burden.
• FOMC members unanimously agree that price stability will be achieved.
• The recent past should not be seen as a harbinger of inflation problems.
• Leadership changes present a suitable opportunity to review existing practices.
• Today’s policy statement is shorter and simpler.
• The previous statements have been removed from the explanation, and only the facts are stated.
• No (dot plot) forecasts were presented today.
• We will explore what changes could improve monetary policy.
• This is consistent with a long-held view.
• I agree that forward-looking guidance isn’t very appropriate for the current situation.
• Working groups have been tasked with addressing five areas of monetary policy. Topics to be covered by the working groups include, among others, communication and balance sheets, data sources, productivity and employment, and the inflation framework.
• The Communications Task Force can reshape the dot plot.
• The Balance Sheet Study Group will review the Fed’s bond portfolio.
• The Data Working Group will evaluate new data sources and methodological changes.
• The Productivity and Employment Task Force will examine the scope of the impact of artificial intelligence and other general technologies.
• Some progress is expected before autumn, and the working groups will complete their work by the end of the year.
• A 2% inflation rate is the Fed’s long-term target.
• There is no reason to reconsider this target until we reach our inflation target of 2%.
• The 2% inflation target will not be within the scope of the inflation working group.
• We have both the capacity and the determination to achieve our 2% inflation target.
• We have ended the forward guidance program.
• We cannot make any predictions about future steps.
• By the end of the year, a comprehensive review of communication methods is expected, including press conferences, dot plotting, and meeting arrangements.
• I haven’t heard anyone express strong confidence in how the forecasts are presented.
• We have missed our inflation target for five years, and it’s time we started to correct that.

As is known, the FED recently held its first Federal Open Market Committee (FOMC) meeting under the chairmanship of Kevin Warsh, leaving interest rates unchanged. The committee unanimously decided to keep the policy rate stable in the 3.50-3.75 percent range.

The federal funds rate, which determines the Fed’s overnight borrowing rate, has remained in the same range since the central bank implemented a total of 75 basis points of cuts in the second half of 2025. Market expectations were also for rates to remain unchanged at this meeting.

However, the most noteworthy aspect of the meeting was the changes the Fed made to its monetary policy communication. The FOMC removed certain statements that had been interpreted as leaving the door open for future interest rate cuts. Furthermore, the policy statement released after the meeting was significantly shortened.

While the April FOMC statement consisted of approximately 350 words, the text released after the June meeting was reduced to about 130 words. Warsh had previously argued that the Fed communicated too much with the markets and provided excessive detail in its monetary policy guidance.

*This is not investment advice.