Warsh Era Starts On A Hawkish Note

The Federal Reserve signaled a more hawkish stance in its latest meeting, revising growth and inflation projections upwards while abandoning explicit forward guidance. Concurrently, a US-Iran geopolitical deal has provided a brief respite from regional tensions.

Key Takeaways

• 1.The Federal Reserve maintained rates at 3.50-3.75% but adopted a more hawkish tone with upward revisions to rate projections for 2026-2028.
• 2.The Fed is moving toward restructuring its communication, evidenced by the removal of forward guidance and a more concise meeting statement.
• 3.US President Trump signed an interim deal with Iran to end hostilities and reopen the Strait of Hormuz, providing a potential slight easing of geopolitical risk.

Table of Contents

• Warsh era starts on a hawkish note
• From the studio
• Thought of the day
• What to watch: 19 June
• Caught our attention
• Daily US
• Market update
• Appendix
• Global asset class preferences definitions
• Risk information

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