{"id":74176,"date":"2026-06-17T18:49:45","date_gmt":"2026-06-17T18:49:45","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/kevin-warshs-fed-holds-firm-as-energy-prices-lift-inflation\/"},"modified":"2026-06-17T18:49:45","modified_gmt":"2026-06-17T18:49:45","slug":"kevin-warshs-fed-holds-firm-as-energy-prices-lift-inflation","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/kevin-warshs-fed-holds-firm-as-energy-prices-lift-inflation\/","title":{"rendered":"Kevin Warsh\u2019s Fed Holds Firm as Energy Prices Lift Inflation"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Kevin Warsh\u2019s Fed held rates at 3.5%-3.75% in a unanimous 12-0 vote.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">CPI hit 4.2% in May as energy prices lifted pressure on U.S. households.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The New York Fed kept $160B RRP limits as markets await July CPI data.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Fed Holds Rates as CPI Reheats<\/h2>\n<p>The Federal Open Market Committee (<a href=\"https:\/\/news.bitcoin.com\/fomc-keeps-interest-rates-steady-ignoring-trumps-call-to-cut\/\">FOMC<\/a>) <a href=\"https:\/\/www.federalreserve.gov\/newsevents\/pressreleases\/monetary20260617a1.htm\" target=\"_blank\" rel=\"noopener noreferrer\">voted 12-0<\/a> on June 17 to maintain the federal funds rate target range at 3.5% to 3.75%, keeping policy tight as <span>inflation<\/span> remains above the central bank\u2019s 2% goal.<\/p>\n<p>The meeting is historic for the <a href=\"https:\/\/news.bitcoin.com\/kevin-warsh-takes-fed-chair-oath-as-fomc-gives-unanimous-backing\/\">Warsh<\/a>-led Fed, but the decision itself was no monetary fireworks display. No cut. No victory lap. No soft little bow tied around a stubborn <span>inflation<\/span> problem.<\/p>\n<p>\u201cThe Committee will deliver price stability,\u201d the statement said, a line with the warmth of a locked vault and the subtlety of a tax bill.<\/p>\n<p>The Fed said economic activity is expanding at a solid pace despite elevated uncertainty, partly tied to the conflict in the Middle East. Productivity growth and capital investment remain strong, while job gains have kept pace with the workforce, and unemployment has changed little.<\/p>\n<h2> <span>Inflation<\/span> Gives the Fed Cover<\/h2>\n<p>The latest Consumer Price Index (CPI) <a href=\"https:\/\/news.bitcoin.com\/trump-warns-iran-will-pay-the-price-as-gas-prices-jump-40-and-inflation-hits-3-year-high\/\">data<\/a> explains why policymakers chose caution over applause. CPI rose 0.5% in May after a 0.6% increase in April, lifting annual <span>inflation<\/span> to 4.2% in May, the highest year-over-year reading since April 2023.<\/p>\n<p>April had already pushed <span>inflation<\/span> to 3.8%, up from 3.3% in March. Earlier in 2026, headline <span>inflation<\/span> had cooled to about 2.4% year over year in February, close enough to the Fed\u2019s target to tempt rate-cut optimists.<\/p>\n<p>Then energy prices marched in wearing muddy boots.<\/p>\n<p>Energy prices rose 3.9% in May after a 3.8% gain in April and accounted for more than 60% of the monthly headline increase. The energy index climbed 23.5% year over year in May, while gasoline prices jumped about 7% month over month and more than 40% year over year in recent readings.<\/p>\n<p>The rise came as geopolitical tensions tied to Iran and the broader Middle East fed energy-market pressure. The Fed\u2019s statement acknowledged that elevated uncertainty owes partly to the regional conflict.<\/p>\n<h2>Core CPI Is Cooler, Not Comfortable<\/h2>\n<p>Core CPI, which excludes food and energy, offered a less dramatic reading but not a clean escape. Core prices rose 0.2% in May and 2.9% year over year, up slightly from 2.8% in April.<\/p>\n<p>Food increased 0.2% in May and 3.1% year over year. Shelter rose 0.3% on the month and 3.4% annually, showing that household costs remain persistent even as some categories cooled.<\/p>\n<h2> <span>Liquidity<\/span> Plumbing Stays Active<\/h2>\n<p>The implementation note kept the interest rate paid on reserve balances at 3.65%, effective June 18. The Board of Governors also voted unanimously to keep the primary credit rate at 3.75%.<\/p>\n<p>The New York Fed\u2019s Open Market Desk was directed to conduct overnight repurchase agreement operations at 3.75% and overnight reverse repurchase agreement operations at 3.5%, with a per-counterparty limit of $160 billion per day.<\/p>\n<p>The Fed also said it may increase System Open Market Account holdings through purchases of Treasury bills and, if needed, other Treasury securities with maturities of three years or less to maintain ample reserves.<\/p>\n<p>That reserve language matters because it shows the central bank wants enough <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-liquidity\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">liquidity<\/a> in the banking system to keep the machinery from wheezing while still refusing to loosen policy prematurely.<\/p>\n<p>The next CPI report, covering June, is scheduled for mid-July 2026. Until then, the Warsh Fed has delivered its message clearly: bring cooler <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-inflation\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">inflation<\/a> data, not wishful thinking.<\/p>\n<h2>Market Reaction<\/h2>\n<p>Markets did not exactly send the Fed a thank-you note. After the decision, major U.S. equity benchmarks turned lower, with the Nasdaq Composite down 106.88 points, the Dow Jones Industrial Average off 54.33 points and the S&amp;P 500 lower by 30.32 points, while <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">bitcoin<\/a> also sold off on Bitstamp, sliding from the $66,000 area toward the low-$65,000 range as traders digested the no-cut message, hotter CPI data and the Fed\u2019s refusal to pretend energy <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-inflation\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">inflation<\/a> is somebody else\u2019s problem.<\/p>\n<p>For now, markets and the press will be watching Warsh\u2019s statements closely during his first press conference as Fed Chairman.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/kevin-warshs-fed-holds-firm-as-energy-prices-lift-inflation\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Kevin Warsh\u2019s Fed held rates at 3.5%-3.75% in a unanimous 12-0 vote. CPI hit 4.2% in May as energy prices lifted pressure on U.S. households. The New York Fed kept $160B RRP limits as markets await July CPI data. Fed Holds Rates as CPI Reheats The [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":74177,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/74176"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=74176"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/74176\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/74177"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=74176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=74176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=74176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}