Fed Holds Rates as Warsh's Inflation Stance Questioned

The Federal Reserve kept interest rates unchanged, but Chair Kevin Warsh's vague communication spooked investors and raised anxiety about less predictable monetary policy.

Mortgage rates surged to their highest level since 2007, with 30-year yields climbing sharply.

Analysts described Warsh as a 'pro-volatility Fed chair' whose approach was unsettling markets.

The Fed now faces a pivotal meeting in September unless a durable geopolitical ceasefire eases the economic uncertainty.