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Warsh departs as federal guide ends

Warsh departs as federal guide ends

The US Federal Reserve announced its decision to hold interest rates steady within the range of 3.5% to 3.75%, with a decline in the use of forward guidance as a source of signals to the market. The Fed issued a brief statement and left future rate path expectations out of the "dot plot," reflecting a move toward relying directly on economic data rather than adhering to previous guidance. This shift aims to demonstrate that monetary policy will be flexible and based on economic developments, while confirming that inflation remains above the target, and the Fed is moving away from long-term promises, allowing the market to interpret the data on its own.

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