By Joe Wallace and Sam Goldfarb
Federal Reserve officials hinted more strongly at the potential for higher interest rates, sending stocks lower and bond yields higher.
The central bank held its benchmark rate steady, as expected, in Kevin Warsh's first meeting as Fed chariman. After the meeting, Warsh held a 42-minute press conference, fielding a range of questions about his priorities. You can watch it here and read more on the Fed statement here.
In his remarks, Warsh was adamant that the central bank needs to deliver on its 2% inflation target-an emphasis that investors took as a sign, along with the Fed's new rate projections, that it might soon raise interest rates.
Stock indexes fell and Treasury yields rose after the Fed decision, with the S&P 500 down 1.2%, the Nasdaq 1.3% lower and the Dow industrials off 1%. Losses deepened during Warsh's remarks. In the bond market, the 10-year Treasury yield rose to 4.462%, while the 2-year moved 0.114 percentage point higher to 4.16%.
On the Fed itself, Warsh said that he is setting up a task force to tackle topics such as communications, the balance sheet, data sources, productivity and jobs, and inflation. He also confirmed that he was the official who didn't submit an economic projection to the Fed's so-called dot plot.
It's a "new chapter for the central bank," Warsh said.
Elsewhere in markets:
Brent crude oil futures pared gains, trading around $80 a barrel, near their lowest level since the first few days of the Iran war. Still, assuming a deal to stop the fighting holds, oil exports and production will take months to recover, the International Energy Agency said today.
After climbing early in the session, Elon Musk's SpaceX lost nearly 5%, its first daily decline since Friday's IPO.
This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).
(END) Dow Jones Newswires
June 17, 2026 16:15 ET (20:15 GMT)
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