Fed Holds Rates At 3.50%-3.75%: Traders Brace For Chair Warsh's First Speech (UPDATED)

The Federal Reserve held interest rates steady at 3.50%-3.75% under new Chair Kevin Warsh. However, the Fed's updated economic projections showed a hawkish surprise, with higher inflation forecasts (PCE at 3.6% for 2026) and signaling one rate hike this year instead of cuts. Markets reacted negatively, with Treasury yields spiking, the dollar strengthening, and equities declining as investors reassess rate expectations.