Finance

In his debut meeting as chair, Kevin Warsh maintained interest rates at 3.5%-3.75% while adopting a notably hawkish tone that surprised market participants. The central bank removed previous forward guidance regarding future rate cuts and introduced new task forces to overhaul Fed communications and balance sheet operations.

The 10-year Treasury yield held near 4.46% as bond markets continued to digest the Fed's updated economic projections, which now suggest a possible rate hike later this year. Shorter-dated two-year yields reached their highest levels since February 2025 as nearly half of FOMC members signaled support for increased borrowing costs to combat persistent inflation.

Digital assets like Bitcoin and Ethereum struggled to gain momentum, sliding over 1% despite the positive news of a peace treaty in the Middle East. Analysts noted that risk-off positioning dominated the crypto space as traders hedged against the potential for higher-for-longer interest rates signaled by the US central bank.