Finance

In his first meeting as Chair, Kevin Warsh maintained interest rates between 3.5% and 3.75% while signaling a more aggressive path forward. The committee's revised economic projections now indicate a greater likelihood of rate hikes later in 2026 to combat persistent inflation concerns.

The annual inflation rate reached 4.2% in May, marking its highest level in three years due to significant spikes in energy and fuel costs. While core inflation showed some cooling, the Federal Reserve remains cautious as the PCE price index is expected to show continued upward pressure in upcoming reports.

Bitcoin and Ethereum faced downward pressure, with Bitcoin falling toward the $62,000 range as risk appetite diminished across financial markets. The decline was exacerbated by substantial outflows from spot ETFs and a broader rotation of capital away from digital assets and into AI-related infrastructure.