world-economy

Fed's First Warsh Decision Draws Criticism Over Transparency

The Federal Reserve held interest rates steady Wednesday under new Chairman Kevin Warsh, signaling a potential rate increase later this year while removing language suggesting future cuts. The decision marked the central bank's first policy announcement under Warsh's leadership. New Century Advisors Chief Economist Claudia Sahm criticized the Fed for omitting its dot plot from the statement of economic projections, arguing the central bank should provide greater clarity on its thinking. Goldman Sachs Asset Management expects Warsh's remarks will create volatility in shorter-duration Treasury securities while stabilizing longer-dated bonds. Initial jobless claims fell 4,000 to 226,000 in the week ended June 13, with the Philadelphia Fed Index indicating solid economic activity.