Finance

In his first meeting as Chairman, Kevin Warsh led the Federal Open Market Committee to maintain interest rates at 3.50% to 3.75% while adopting a notably more hawkish stance. Updated economic projections reveal that nearly half of the officials now anticipate at least one rate hike before the end of 2026, a reversal from previous expectations of cuts. The committee also revamped its policy statement to remove language indicating a bias toward future easing, emphasizing a commitment to curbing sticky inflation.

Global Brent crude prices dropped over 4% to approximately $73.74 per barrel, nearing the levels seen before the recent conflict with Iran. This decline followed reports of improved tanker traffic through the Strait of Hormuz and statements suggesting no new tolls would be sought in the region. The reduction in energy costs has provided a boost to cyclical sectors, particularly helping airline and travel-related stocks outperform the broader market.

Bitcoin fell back toward the $60,000 threshold as the digital asset market remains in a bear cycle, down significantly from its 2025 all-time highs. The total cryptocurrency market capitalization has contracted by approximately $2 trillion from its peak, driven by shifting macro scenarios and reduced risk appetite. While some alternative assets like Stellar have seen gains due to institutional network adoptions, the broader sector continues to struggle against rising U.S. dollar strength and higher interest rate expectations.