Finance

At his first meeting as Chair, Kevin Warsh signaled a striking reversal in monetary policy by shifting the Federal Reserve's focus toward aggressive price stability. While the benchmark rate was held steady at 3.5% to 3.75%, updated economic projections revealed that nearly half of the officials now anticipate at least one interest rate hike before the end of 2026. This hawkish turn has effectively eliminated market expectations for near-term rate cuts.

Oil prices have retreated significantly from recent highs after the United States and Iran reached an agreement to end their military conflict and reopen the strategic Strait of Hormuz. Brent crude settled near $80 per barrel, down from previous spikes above $113 during the height of the geopolitical tension. Despite this stabilization, energy sector stocks recently lagged the broader market as investors rotated into high-growth technology sectors.

Bitcoin and Ethereum faced downward pressure following the Federal Reserve's latest policy signals, with Bitcoin dropping below $63,000 on June 19. The prospect of 'higher for longer' interest rates and a strengthening US dollar have dampened investor appetite for non-yielding assets. Analysts noted that the market is entering a phase of horizontal distribution as traders react to the fading possibility of monetary easing in 2026.