The Federal Reserve, under new Chair Kevin Warsh, unanimously held interest rates at 3.5%-3.75% while signaling potential hikes to combat 4.2% inflation.Warsh eliminated traditional forward guidance and established five internal task forces to overhaul policy communication, data analysis, and balance sheet management.These structural reforms aim to prioritize price stability and institutional autonomy despite political pressure to lower borrowing costs.Market volatility followed the announcement as the
Fed shifted toward a more reserved communication style designed to prioritize real-time data.