Finance

In the first policy meeting led by Chair Kevin Warsh, the Federal Reserve maintained interest rates at 3.5% to 3.75% while signaling a likely hike later this year. The central bank's updated projections indicate a more aggressive stance on inflation, with median estimates now favoring a rate increase by year-end to counteract persistent price pressures.

Crude oil futures continued to slide, with Brent dropping toward $76 a barrel as geopolitical tensions eased in the Middle East. Optimism regarding the reopening of the Strait of Hormuz and a new waiver allowing the purchase of Iranian crude has significantly reduced the supply risk premium that previously buoyed prices.

U.S. Treasury yields pushed higher today, with the 10-year note reaching 4.5% as investors adjusted to the Fed's hawkish tone and heavy note auctions. This upward movement helped drive the U.S. dollar index to its strongest level since May 2025, reflecting robust safe-haven demand and shifting interest rate expectations.