Safeload Coverage
It was a new era for the Federal Reserve on Wednesday.
Federal Reserve Chair Kevin Warsh delivered his first press conference as chair for the Federal Reserve while also marking his return to the Fed for the first time since March 2011. Warsh announced the Fed would leave interest rates at 3.5 to 3.75 percent with no cuts coming after the two-day June meeting. The voting for the monetary policy rate was unanimous at 12-0.
Warsh also announced several task forces, what they’ll do, how these task forces will help the Fed, the use of future forecast/projections — such as the dot plot — and whether Warsh will still hold future press conferences.
Moving Help® will explain why the Federal Reserve came to this decision, and what it means for homebuyers who are looking to buy or sell a house in the future.
Who Voted for and Against This Policy Rate?
The Federal Open Market Committee’s vote was 12-0 with the entire committee voting unanimously for the monetary policy rate to remain unchanged and to leave the target range for the federal funds rate at 3.5 to 3.7 percentage points.
It was the first time in 2026 that committee was unanimous about the monetary policy rate.
ICYMI: Stephen I. Miran resigned in mid-May, and after Warsh was confirmed as the next chair, he took the board seat that Miran vacated.
| Voting Member Name | How Did They Vote? |
|---|---|
| Kevin Warsh, chair | Yes |
| John C. Williams, vice chair | Yes |
| Michael S. Barr | Yes |
| Michelle W. Bowman | Yes |
| Lisa D. Cook | Yes |
| Beth M. Hammack | Yes |
| Philip N. Jefferson | Yes |
| Neel Kashkari | Yes |
| Lorie K. Logan | Yes |
| Anna Paulson | Yes |
| Jerome H. Powell | Yes |
| Christopher J. Waller | Yes |
Why No Cuts to Interest Rates?
The Fed acknowledged economic activity was expanding at a solid pace despite elevated uncertainty in the Middle East. Job gains have kept pace, and the unemployment rate remains little unchanged.
Inflation remains elevated of the Fed’s 2 percent goal partly because of supply shocks that have been sent through several sectors, especially the energy sector. Inflation is still ahead of the Fed’s target goal, which Warsh noted.
“That’s been going on for more than five years,” Warsh said. “Persistently high prices are a burden for the American people. But the recent past need not be prologue. I am pleased to report that members of the FOMC are unambiguous and unanimous. This committee will deliver price stability.”
Warsh discussed how the Fed will earn credibility by delivering the Fed’s promise of the 2 percent target range.
What Does the Future Hold?
It appears the Fed will most likely stay put or potentially increase rates by the end of 2026. Of course, factors like the Middle East conflict could change future forecasts.
President Donald Trump and his administration have been wanting the Fed to cut rates for a while now. Trump hand-picked Warsh to lead the Fed, and so far, it appears he’ll give Warsh some leeway for the time being with no rate cuts.
Warsh also shortened today’s policy statement to make it simpler along with removing forward guidance.
“On that score, you might have already noticed something — a difference in today’s policy statement,” Warsh said. “It’s a bit shorter, a bit simpler, and it dispenses with some older language. That statement just gives you the facts as best we can judge it. Absent also is so-called forward guidance, which we agreed was not well-suited to the current policy conjuncture.”
Reporters and the public got to see the summary of economic projections. It’s Fed’s practice to submit these “dot plot” projections. As chair, Warsh encouraged his colleagues to do so, but he chose not to submit one himself.
“I, however, refrained from offering any projections of my own, consistent with my long-held views on the SEP, at least as currently structured,” Warsh said.
“I, however, refrained from offering any projections of my own, consistent with my long-held views on the SEP, at least as currently structured.”
Federal Reserve Chair Kevin Warsh said at the press conference
Warsh also was pleased with the committee’s focus and commitment to the job they’re required to do. He mentioned they had a good family fight for a couple of days, and they “ended up in a better place.”
Policymakers are split between no cuts and one more quarter-point increase later this year.
Warsh also announced several key initiatives. He’s appointing a task force in five areas that are central to the broad conduct of monetary policy:
- Fed communications
- Fed’s balance sheet
- The Fed’s use and reliance on existing data sources
- Productivity and jobs in an era of transformation
- Fed’s inflation framework
These will be independent task forces with the “very best minds, both inside and outside the economics profession,” Warsh said. He’s still in the finalization of the task forces, but they’ll begin work in the next couple of weeks.
Want to read more about the task forces, jump down to the “What Are These Task Forces?” section.
What Does This Mean for Home Mortgage Rates?
Because the Federal Reserve didn’t cut interest rates, housing mortgage rates won’t see a rapid decline in interest rates. Mortgage interest rates have increased since the last Fed meeting, but it’s nowhere near the highs seen in 2023 to 2025.
From Jan. 15, 2025, to June 11, 2026, a 30-year mortgage rate has hovered anywhere between 5.98 percent to 6.89 percent for a 30-year mortgage rate, according to Freddie Mac. The rates have been closer from 6.23 percent to 6.52 percent since the last Fed meeting in April.
During the same time frame, a 15-year mortgage rate has hovered between 5.35 percent to 6.09 percent, according to Freddie Mac. The rates have been closer from 5.58 percent to 5.84 percent since the last Fed meeting in April.
Both 15- and 30-year interest rates saw a trend of rates increasing since the beginning of May and continue to slightly climb higher in June.
What Does This Mean for People Looking to Move?
Housing mortgage rates are still higher than they were pre-pandemic.
Housing mortgage rates for a 30-year loan and a 15-year loan are still lower than the peak 7.79 percent 30-year mortgage rate and 7.03 percent 15-year mortgage rate in late October 2023.
While it’s true that the spring/summer is homebuying season as families look to move between the school year, it’s still a buyer’s market. Many homebuyers are holding off purchasing a home because the house market has an affordability crisis along with “renewed economic worries are again keeping many on the sidelines,” according to Redfin.
Other Federal Reserve News
Warsh had plenty of other news when it came to what he wanted to see from the Federal Reserve moving forward. One of the first questions was about press conferences. Will he still continue to hold press conferences? The answer was yes. Press conferences can be a useful way to communicate with households, businesses, and the media, he said.
On that note, he referenced his mentor’s mantra for press conferences.
“Press conferences are useful, but when you have one, you want to make sure you have something important to say,” Warsh said. “We have something important to say about our commitment to deliver on price stability, commitment to rethink practices with an eye of moving the Fed forward, and to give you and the American people a sense that these aren’t idle thoughts.”
For now, it’s safe to say Warsh will continue to hold press conferences as long as he feels the Federal Reserve has something important to say.
What Are These Tasks Forces?
As mentioned earlier in this article, Warsh announced he’ll have task forces in five key areas that are central to the broad conduct of monetary policy:
- Fed communications
- Fed’s balance sheet
- The Fed’s use and reliance on existing data sources
- Productivity and jobs in an era of transformation
- Fed’s inflation framework
When it comes to the timeline for these task forces, it’ll depend on the task force, he said. Warsh believes there might be better ways for the Federal Reserve to do its job, and these task forces can enhance, help, and improve the Federal Reserve, especially when it comes to reviewing data during these meetings.
“I’ll say this generally most of the data that central bankers and other government officials in the United States consume come with old-fashioned survey methods,” he said. “A national account of what the U.S. economy looks like that looks very little like the U.S. economy in 2026. Survey methods that don’t have response rates that we need asking questions that might have been quite applicable a generation ago that are less applicable now. So, even inside of official statistics, I would be open-minded if the task force and our own best thinking had recommendations [on] how those official statistics can be brought up to a standard of our time, using new analytic methods.
When the press asked him different questions such as the dot plot, forward guidance, future forecast, and other questions, Warsh had a simple response to these questions.
“We have a task force for that,” he said.
The Federal Reserve will review the communications, and Warsh expects changes to occur by the year-end, but he’s open-minded on what those changes could be for the Fed.
“I was incredibly impressed over the last couple of days,” he said. “My colleagues over the last two days, frankly, the first three weeks I’ve been here, have been very open about changes. Change isn’t easy. Change is filled with risk. But our number one goal is to get monetary policy right. The way to get monetary policy right is to deliver on the remit that Congress gave us to deliver on price stability.”
How Does Warsh Feel About the Dual Mandate?
The Federal Reserve has dual mandate goals of maximum employment and stable prices for the benefit of the American people. Warsh doesn’t share the same views as previous chairs have shown in the past generations where you’ve got to choose between both of them.
“You talked about one of our dual mandates and the employment side. I don’t believe that we have a cruel choice,” Warsh said. “What I believe is if we do our job, we can make strong growth, low prices, and strong employment mutually compatible. So, what you heard from the Committee today is we’ve got some work to [do on] the price stability front.”
What About the Building Renovations?
Warsh has met with the inspector general. They’ve had one meeting together so far. He believes the Fed chair should meet with the inspector general as a matter of good practice.
“It’s a practice I hope to continue,” he said.
It was no surprise to anyone that the inspector general told Warsh he’ll come out with a report on the building and the building projects later this summer.
“And I’ll be interested in reading the report,” he said. “From my perspective, with a forward-looking glance, is there anything that we can be doing or should be doing from this moment until the completion of the project to do what we can do to be good stewards of taxpayer money and make sure that we’re delivering on the promises that we made.”
It hasn’t been Warsh’s main focus because of other preoccupied matters, but he’ll “get to the full breadth of the Fed’s tasks in the weeks ahead.”
When Is the Next Federal Reserve Meeting?
The next Federal Reserve meeting is scheduled for July 28-29, 2026.
You also can read previous recaps of the January, March, and April meetings.
