Warsh’s FOMC debut sends bitcoin, gold lower

Kevin Warsh held his first Federal Open Market Committee press conference on June 17, 2026, after the committee left the federal funds rate unchanged at 3.50%–3.75%. Markets moved quickly: prices for Bitcoin and gold fell following his remarks.

Warsh opened by praising the committee’s debate and accountability, saying, “This week’s FOMC meeting exemplified the best of the Fed traditions: vigorous debate, open-mindedness, commitment to mission, responsibility and accountability for performance.” He described current economic activity as “expanding at a solid pace,” citing strong productivity, capital investment and a stable labor market, while noting inflation has remained above 2% for more than five years.

The committee released a shorter, simpler policy statement that omits some older language. He described the statement as one that “just gives you the facts, as best we can judge it.” The press conference removed explicit forward guidance; Warsh said forward guidance was “not well suited to the current policy conjuncture” and stressed that policy would be data-dependent so markets should react to economic releases.

Traders adjusted positions during and after the event. Prices for both gold and Bitcoin fell sharply as market participants reassessed the chances of additional tightening and shifted risk exposure across asset classes.

Warsh declined to publish his own interest-rate projections. He told reporters he had “refrained from offering projections of my own,” while encouraging other committee members to continue submitting their forecasts. The Summary of Economic Projections showed a median path with nine officials expecting at least one rate increase in 2026.

He announced five internal task forces to review Fed practices and tools, covering communications, the balance sheet, data sources, productivity/jobs/AI, and inflation frameworks. He described their charge as to “ask hard questions, examine current practice, consider alternatives,” and said each group would share common objectives to improve the Fed’s ability to meet its mandate.

On the 2% inflation target, Warsh reaffirmed the Fed’s long-standing goal and defended keeping it unchanged. He said, “That is the Federal Reserve’s long-held objective of 2%. The ‘two’ is the left of the decimal point. For now, ‘zero’ is to the right,” and added he saw no reason to revisit the target until the committee had reestablished the ability to deliver it.

Warsh emphasized that markets should respond to incoming data rather than to preset central bank signals. He framed the shorter statement and the task forces as institutional measures intended to support the committee’s price-stability mandate.