Fed holds as markets struggle to get a handle on Warsh

The Fed left its key policy rate unchanged at 3.50%-3.75% with almost zero changes to the statement, but three hawkish dissents from regional bank presidents Lorie Logan, Neel Kashkari and Beth Hammack highlight growing support within the FOMC for tighter policy. Nonetheless, the vague and arguably counterproductive communications from Chair Kevin Warsh during the press conference make forecasting the Fed’s next move even trickier than it already was.