The dollar has edged up against most major currencies ahead of the Federal Reserve’s initial policy decision under new Chair Kevin Warsh.
Federal Reserve policymakers will announce their latest interest rate decision at 2 p.m. ET. Despite pressure from President Trump to lower rates, the Fed, under Warsh, is expected to keep rates steady in the range of 3.5% to 3.75%Wednesday’s meeting.
All eyes will be on Warsh as investors adjust to a new policy stance following Jerome Powell’s long-standing term ending last month.
Among the issues to watch will be any indications Warsh provides about whether he will continue to hold news conferences after every meeting, his broader communications strategy, and his plans to reduce the Fed’s bond holdings on its $6.8 trillion balance sheet.
Despite stepping down as Chair, Jerome Powell opted to remain on the Board of Governors as the Federal Reserve’s inspector general’s office continues an investigation into the renovations at Fed headquarters in Washington, D.C. Powell still has nearly two years remaining on his term and announced in late April that he will serve “for a period of time to be determined.”
By CEO NA Editorial Staff
