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Central Banks•22 June 2026•

2 min read

Fed Holds Rates Steady in First Meeting Under Kevin Warsh; July Cut Odds Fade

Key Facts

1The Federal Reserve kept interest rates unchanged in the first FOMC meeting under new Chairman Kevin Warsh.

2Fed funds futures imply almost zero chance of an interest rate cut in July.

In a move reflecting a steady hand on monetary policy, the Federal Reserve kept interest rates unchanged in the first FOMC meeting led by new Chairman Kevin Warsh. The decision aligned with market expectations as the central bank maintains its current stance amid evolving economic conditions. According to reports, Fed funds futures now imply almost zero chance of an interest rate cut in the upcoming July meeting.

This pause comes as global central banks diverge, with the Bank of Japan raising its interest rate to 1% on June 16, 2026, per market data, while the Reserve Bank of Australia held rates at 4.35%. In the U.S., recent data shows cooling in the property sector as Housing Starts fell by 15.4% in May, providing the Fed with further justification to remain patient before considering any policy easing.

Traders are currently monitoring yield levels following the 20-year Bond Auction which cleared at 4.927% as of June 16, 2026. Looking ahead, the economic calendar features critical inflation data from the UK and the Eurozone on June 17, which will help define the global macro backdrop. Market participants will be searching for any shifts in rhetoric regarding the policy path for the remainder of the year.