Fed meeting recap: FOMC holds interest rates steady, Kevin Warsh signals a break from tradition
NEWS | 18 June 2026
"You can't talk about cutting rates in this environment," Sonola said. "It's also premature to talk about raising rates in a concrete way." Olu Sonola, US head of economic research at Fitch Ratings, said if the job market side of the Fed's dual mandate is fine, the consumer is "hanging in there," and the AI boom is helping support economic growth, then the Fed needs to focus on hotter inflation. Olu Sonola, US head of economic research at Fitch Ratings, said if the job market side of the Fed's dual mandate is fine, the consumer is "hanging in there," and the AI boom is helping support economic growth, then the Fed needs to focus on hotter inflation. "You can't talk about cutting rates in this environment," Sonola said. "It's also premature to talk about raising rates in a concrete way." Economists are also wondering what the Fed will look like under Kevin Warsh as chair. Jonathan Pingle, the chief US economist at UBS Investment Bank, said Fed watchers can parse through what Warsh has said over the years, but it's been 15 years since he left the Board of Governors. "I'm not sure we really know, in terms of the details of monetary policy, what path he is going to pursue," Pingle added. "Kevin Warsh is coming in with a fresh face, fresh ideas, a very different perspective on the role the Fed should play," Stephen Kates, a financial analyst at Bankrate, said. "But also coming into a very difficult environment."
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