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On June 18th, when asked whether Federal Reserve officials had discussed interest rate cuts at their meetings ending Wednesday, Fed Chairman Warshs answer was clear: "There was only one proposal on the table, and no other proposals were discussed." He stated, "For us, there was only one core issue, and officials had a heated internal discussion around it (like a family debate)." However, he also pointed out that after thorough discussion, officials ultimately reached a consensus. The Fed decided to maintain interest rates in the 3.5% to 3.75% range, a decision that was ultimately unanimously approved.On June 18th, Federal Reserve Chairman Warsh declined to comment at a press conference on Wednesday whether he had communicated with Trump since officially assuming the chairmanship last month, but he confirmed that he had met with Treasury Secretary Bessant. He said, "I have no information to provide regarding the president. As for the Treasury Secretary, he even posted a photo of us having breakfast together on social media, so… I guess I cant deny that. Its a long-standing tradition between the Fed and the Treasury that the Fed Chairman and the Treasury Secretary meet weekly. I think weve had three meetings so far. He should be overseas this week, so this meeting will be an exception."According to the Islamic Republic News Agency (IRNA), the United States pledged to grant exemptions for Iranian exports of oil, petrochemical products and derivatives, as well as all related services, between the signing of the memorandum and the lifting of sanctions.On June 18, newly appointed Federal Reserve Chairman Warsh announced at his first press conference in Washington that he would initiate reforms to the Federal Reserve, including the establishment of five new special working groups. Warsh stated, “I will establish working groups in five areas closely related to the implementation of monetary policy—first, the Fed’s communication mechanism; second, the Fed’s balance sheet; third, the use and reliance on existing data sources; fourth, productivity and employment in a transitional era; and fifth, the Fed’s inflation framework. These issues are all relevant and have significant implications, and in my view, deserve a comprehensive review.” He expressed hope that most, if not all, of the working groups would be completed by the end of this year. The relevant teams are still being formed and are expected to launch in the coming weeks, with preliminary analytical frameworks to be provided starting in the fall. Warsh also stated that the working group responsible for the communication mechanism is expected to ultimately propose “well-considered adjustments,” which may include revisions to the Fed’s Summary of Economic Projections (SEP). The SEP includes a “dot plot” that displays the interest rate expectations of 19 senior officials. Warsh further pointed out that most private sector executives use real-time information, which generally requires little correction, while government data is frequently revised.On June 18th, Federal Reserve Chairman Warsh stated at a press conference that the Fed has the capability to achieve its 2% inflation target, which is exactly what they are doing. The committee is "clearly and consistently" committed to achieving the 2% inflation target. He pointed out that the current high inflation is due to supply shocks. When pressed for forward guidance, he declined to provide specific details but indicated that the Feds policies appear to have curbed the housing market. Warsh stated that press conferences are an effective way to communicate with American households and businesses, but he did not commit to holding press conferences after every future Fed meeting.
