Finance

In the first meeting led by new Chair Kevin Warsh, the Federal Open Market Committee held interest rates steady but updated its projections to suggest at least one hike may occur later in 2026. This move marks a pivot from previous expectations of monetary easing as the Fed maintains a focus on curbing persistent inflation.

Oil prices have plummeted roughly 13% recently following a framework agreement between the United States and Iran to de-escalate conflict and reopen the Strait of Hormuz. While the deal remains fragile due to regional tensions, the resulting disinflationary pressure has provided significant tailwinds for the broader equity market.

U.S. Treasury yields across the curve moved higher following the Federal Reserve's hawkish policy update, with the 2-year yield experiencing its most dramatic one-day spike since early 2025. The 10-year yield held near 4.46% as the market adjusted to the prospect of higher borrowing costs through the end of the year.