world-economy

Warsh Reshapes Fed Policy in Debut Meeting as Markets Watch Yen

Federal Reserve Chairman Kevin Warsh signaled significant operational changes at the central bank's first policy meeting under his leadership Wednesday, prompting market observers to monitor potential currency interventions from Japan. The hawkish stance adopted during the session triggered yen weakness to levels that historically have prompted Tokyo's finance ministry to act. Warsh established a task force to review the Fed's $6.7 trillion balance sheet, fulfilling a long-stated priority to overhaul central bank operations. He held rates steady while delivering a carefully structured press conference that Fed watchers characterized as smooth, polished, and tightly controlled. The moves mark the beginning of broader institutional reforms Warsh pledged during his confirmation process, setting expectations for accelerated policy adjustments in coming months.