The Federal Reserve unanimously held rates at 3.5%-3.75% in new Chairman Kevin Warsh’s first decision. The policy statement and updated projections took a hawkish turn, signaling fewer rate cuts this year.
The Federal Reserve convened its fourth FOMC meeting under new Chair Kevin Warsh. Markets widely expect rates to hold steady but investors are focused on the new chair policy signals. The Nasdaq 100 is positioned for a rebound.
Summary The latest data from the US Bureau of Labor Statistics shows that producer prices surged significantly in May 2026, recording the largest annual increase since 2022. Soaring energy prices were the primary driver of this inflation acceleration, adding new uncertainty to the Federal Reserve’s future monetary policy direction. Details According to the Associated Press, US producer prices rose more than expected both month-over-month and year-over-year in May, with the energy component showing particularly sharp gains. Data indicates that energy price surges were the core force driving overall producer price increases, reflecting the direct transmission effect of global crude oil market volatility on US domestic production costs. ...
US Stock Market Plunges: Dow Drops 695 Points, Nasdaq Falls 4% on Weak Jobs Data US stock markets suffered their worst single-day sell-off since 2025 on June 5, with the Dow Jones Industrial Average plummeting 695 points and the Nasdaq Composite diving four percent. The S&P 500 also posted sharp losses, erasing months of gains in technology and artificial intelligence stocks. The sell-off was triggered by a weaker-than-expected US jobs report that paradoxically increased expectations of Federal Reserve rate hikes, as investors feared that labor market weakness could coincide with persistent inflation. Treasury yields jumped in tandem with the equity decline, reflecting a complex market reaction that defied traditional risk-off patterns. ...
Fed’s First Inflation Report Under Chair Warsh Shows Prices Near 3-Year High The Federal Reserve’s first inflation report under new Chair Kevin Warsh reveals U.S. consumer price growth approaching its highest level in nearly three years, prompting market reassessment of monetary policy direction. Core personal consumption expenditure (PCE) prices rose 3.1% year-over-year, up 0.3 percentage points from the prior month — the fastest pace since September 2023. Energy price volatility was a primary driver, with international oil prices surging over recent months due to ongoing Middle East geopolitical tensions, pushing up transportation and manufacturing costs. ...
The Federal Reserve has proposed granting limited master account access to crypto firms that have long sought such privileges. This move is seen as a significant signal of shifting US regulatory stance toward the crypto industry. Master accounts allow institutions to directly use the Fed’s payment clearing system, and gaining this access would substantially improve crypto firms’ operational efficiency and fund liquidity. The proposal is currently in the public comment period. ...
Federal Reserve Chair Jerome Powell has officially stepped down, marking the beginning of a new era of uncertainty for the world’s most influential central bank. Powell’s tenure spanned the COVID-19 pandemic, historic inflation spikes, and the most aggressive rate-hiking cycle in decades. The Fed now faces what analysts are calling a “regime change.” The new leadership will inherit an economy where inflation remains stubbornly persistent – the 30-year US Treasury yield has just broken to its highest level in nearly 20 years, sending global bond markets reeling. ...
The U.S. Senate officially confirmed a new Federal Reserve chair on May 13, marking a pivotal moment for monetary policy leadership under the Trump administration. Background The confirmation followed months of intense political negotiations. Trump allies repeatedly stated during Senate hearings that further interest rate cuts would require more convincing economic data, particularly given inflationary pressures stemming from the ongoing Iran conflict and global trade uncertainties. Market Reaction Wall Street responded cautiously to the news. Analysts emphasized that the new chair’s policy philosophy will shape future rate decisions, with direct implications for corporate borrowing costs, the housing market, and consumer lending conditions. ...
US inflation accelerates after weeks of Iran war, with energy costs as the main driver.
US Jobs Data Beats Expectations for Second Straight Month, Fed Rate Cut Outlook Diminishes The latest US employment report exceeded market forecasts for the second consecutive month, indicating a resilient labor market and reducing the Federal Reserve’s rationale for interest rate cuts. BBC reported that nonfarm payrolls surged well above economist expectations, with the unemployment rate remaining near historic lows. The data underscores sustained economic resilience while complicating the Fed’s monetary policy decisions. ...