Federal Reserve Maintains Rates, Signals Hawkish Stance, and Establishes Balance Sheet Task Force

The Federal Reserve, under new Chair Kevin Warsh, held its benchmark interest rates steady at 3.50%-3.75% following its June 16-17 meeting. The Federal Open Market Committee (FOMC) adopted a more hawkish tone, indicating that further rate hikes remain possible due to persistent inflation concerns. Chair Warsh also announced the formation of a task force to review the central bank's $6.7 trillion balance sheet and the current ample reserves regime.