Forward Guidance Is Gone

The FOMC kept rates unchanged and dropped its easing bias in a brief statement. New Chair Kevin Warsh effectively ended the practice of providing forward guidance.

Key Takeaways

• 1.The FOMC, under new Chair Kevin Warsh, effectively terminated forward guidance.
• 2.The FOMC maintained the federal funds rate at 3.50-3.75% and dropped its easing bias.
• 3.Rabobank expects the Fed to remain on hold for the remainder of 2026 due to uncertainty regarding the Strait of Hormuz.

Table of Contents

• Summary
• Introduction
• FOMC statement and projections
• Warsh's press conference
• Conclusion

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