What to Expect at Kevin Warsh's First Federal Reserve Meeting as Chair: 3 Things to Watch for When the FOMC Meets in June

💡 Kevin Warsh's first FOMC meeting as chair will be closely watched for clues on Fed policy and interest rates.

The Federal Reserve is set to meet in June, and Kevin Warsh's first meeting as chair will be closely watched for clues on Fed policy and interest rates. The economy has been experiencing a slowdown, with GDP growth declining and inflation rising. As a result, investors will be looking for any hints on whether the Fed will continue to raise interest rates or consider a pause.

Fed Signals Rates Higher for Longer

Powell's comments represent a significant shift from December's dovish pivot. With the Fed signaling that interest rate cuts remain further away than markets had hoped, $SPY has been under pressure. The 10-year Treasury yield has surged to 4.8%, its highest level since October 2023.

Inflation Expectations

The Fed's preferred inflation gauge, the Personal Consumption Expenditures (PCE) price index, has been rising steadily, indicating that inflationary pressures remain. As a result, investors will be looking for any signs that the Fed is starting to worry about inflation and may consider a rate hike.

GDP Growth

The economy has been experiencing a slowdown, with GDP growth declining in recent quarters. The Fed will be looking for any signs that the economy is starting to recover and may consider a rate cut. However, with inflation rising, it's unlikely that the Fed will cut rates anytime soon.

What It Means for Investors