The Federal Reserve has a new chair, and Kevin Warsh’s first Federal Open Market Committee meeting at the helm gives investors their first real look at how he may steer interest-rate policy. Investors aren’t expecting any change in interest rates at this meeting, but will be looking for clues about the next directional decision.
In January 2026, investors believed multiple rate cuts were inevitable this year. However, the U.S. conflict with Iran has complicated those expectations. Inflation, which was already stubbornly above the Fed’s preferred 2% target, has started to climb, fueled by higher energy prices. Last month’s Jobs report came in hotter than expected.
