The Fed held its benchmark rate steady (in a range of 3.5% to 3.75%). This was expected by many economists and most participants in our poll. Interestingly, the share of participants in our poll who expected a rate hike had increased somewhat (from a low level).

The Fed signaled that interest rates may be raised later this year. Interestingly, the press release under the new chair Kevin Warsh is now much shorter than it used to be. The intention seems to be to communicate with short sentences that get straight to the point. This is something to like. However, potential nuances in previous press releases might be lost now.

The Fed now puts less emphasis on forward guidance. Kevin Warsh did not submit his economic projections.

Five task forces will be created to propose changes in communication, balance sheet management, data sources and uses, productivity and jobs, and the inflation framework.