The Federal Reserve left its benchmark fed funds rate range unchanged at 3.50%-3.75% on Wednesday, extending its pause for a sixth consecutive meeting as policymakers continue to grapple with stubborn inflation.
The decision came after one of the most uncertain pre-meeting setups in years. Futures markets had assigned roughly a 65% probability to a hold and 35% odds of a quarter-point increase, according to CME FedWatch data.
It was an unusual setup, as for years, the Fed had typically tried to communicate to markets the direction it was going to take on policy
Attention now turns to Chair Kevin Warsh’s post-meeting press conference. Warsh has been openly critical of the Fed’s traditional use of forward guidance and the quarterly “dot plot,” and investors will be watching closely for signs that the central bank’s communication strategy is changing under his leadership.