economy
The market didn't like what it heard from the Fed and its new leader Kevin Warsh
The S&P 500 closed down 1.2%, as bond yields rose.
TL;DR
- The S&P 500 closed down 1.2% following the Federal Reserve's monetary policy meeting.
- Bond yields increased, with the 10-year Treasury yield nearing 4.5%.
- Nine FOMC members projected higher fed funds rates for the end of 2026 than the current range.
- Kevin Warsh, the new Fed chairman, confirmed he did not provide projections, aligning with his views against forward guidance.
- The FOMC revised its near-term inflation outlook upward.
- Warsh established five independent task forces to review key Fed operations: Fed communications, balance sheet policy, data sources, productivity and jobs, and the inflation framework.
- The goal of the task forces is to enhance the Fed's ability to achieve price stability and maximize employment.