Fed chair Warsh removes forward guidance from policy statement

The US Federal Reserve has stopped telling markets what it plans to do with interest rates. Fed Chair Kevin Warsh, who took office in May 2026, led the change. The policy committee voted unanimously to remove forward guidance from its official statement. This is a break from long-standing practice.

Previously, the Fed regularly signalled its future plans to help investors prepare. Warsh said he cannot offer any forward guidance and refused to submit his own rate forecast. However, he encouraged other policymakers to do so. Nine of the nineteen committee members expect at least one rate rise before the end of 2026.

The Fed has also removed monetary accommodation in its current policy action. Warsh said the committee will focus on bringing inflation back to its 2% target.