Fed chief Warsh acknowledged that an interest-rate hike won't open the Strait of Hormuz or contain high oil prices, but he said the Fed can help prevent inflation from spreading beyond energy. "We can't affect any individual price,

Traders have assigned a better than 90% probability that the FOMC will vote to raise the overnight funds rate a quarter point.

Warsh brushed off a question about where the fed-funds rate is relative to the neutral rate. “I have always been interested in neutral rate as an academic matter," he said. It is useful academically to help think about monetary policy,

Federal Reserve Chairman Kevin Warsh refused to answer a question about whether a series of rate hikes might be needed, saying he was going to stick with his new policy not to guide markets. Warsh said he wouldn't comment on his conversations with President Donald Trump.

Major stock indexes lost ground, with the S&P 500 and Nasdaq Composite turning lower, as Federal Reserve Chair Kevin Warsh said inflation has been “too high ... for too long” after the central bank unanimously raised interest rates for the first time since 2023.

Massive cloud providers are spending big to build out the infrastructure needed to power artificial intelligence. Warsh said that spending is one reason long-term bond yields are so high. "The surge in capital expenditures,

Stock indexes dropped and bond yields rose as Fed Chairman Kevin Warsh concluded his news conference. Traders appear to be coming out of the press conference expecting more rate hikes than they did prior to it starting.