WATCH: New Fed chair Kevin Warsh holds first news conference after leaving interest rate unchanged

By — Christopher Rugaber, Associated Press Christopher Rugaber, Associated Press Leave your feedback Share Copy URL https://www.pbs.org/newshour/economy/watch-live-new-fed-chair-kevin-warsh-holds-first-news-conference-after-interest-rate-decision Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter WATCH: New Fed chair Kevin Warsh holds first news conference after leaving interest rate unchanged Economy Updated on Jun 17, 2026 4:54 PM EDT — Published on Jun 17, 2026 11:14 AM EDT WASHINGTON (AP) — The Federal Reserve kept its key rate unchanged Wednesday yet almost half the central bank's policymakers said they could support a rate hike later this year. Watch in our video player above. The unexpectedly aggressive tilt toward higher rates would disappoint President Trump and suggests heightened concerns about persistent inflation among Fed officials. READ MORE: Higher prices for gas, groceries and flights will outlast Iran war, analysts say In an unusually short statement after their two-day meeting, the officials dropped language that had suggested their next move would be to cut the key rate. The brief statement reflects the influence of new chair Kevin Warsh, appointed by Trump, who has previously criticized the Fed for commenting too broadly on the economy. Educate your inbox Subscribe to Here’s the Deal, our politics newsletter for analysis you won’t find anywhere else. Still, Warsh's 18 colleagues on the Fed's rate-setting committee sent a clear message in a set of quarterly projections released Wednesday: Nine signaled they supported higher rates this year, with six of those supporting two quarter-point increases. It's a sharp change from March, when no policymakers penciled in a hike and the committee as a whole forecast one cut in 2026. The change is an acknowledgement that inflation is at its highest level in three years and many officials have said in recent speeches that if inflation doesn't decline, higher rates may be necessary in the coming months. READ MORE: What's in the agreement to end the U.S. war in Iran, according to a U.S. official Warsh, in his first news conference as chair, also underscored the Fed's determination to bring inflation down to the central bank's 2% target, suggesting he will take a hawkish approach as chair. "Hawks" typically support higher rates to quell inflation, while "doves" often support lower rates to boost hiring. "We've missed (on inflation) for five years and we're going to fix that," he said. "When we deliver on our price stability objectives, which we will, the American people will feel as though the hardships that they've been living through ... are in the rear view mirror." Warsh had supported rate cuts last year while under consideration to be Trump's pick as Fed chair to replace Jerome Powell. Since returning to the White House last year, Trump repeatedly attacked Powell for not cutting rates more deeply. Warsh did not hint whether he was leaning toward hiking ra