Investors piled on bets for higher borrowing costs after Kevin Warsh opted against providing policy guidance at his first meeting as Federal Reserve chairman.
Bank of England policymakers kept interest rates on hold, saying the impact of the war in Iran was still a major source of uncertainty for the economy.
The governor of the Bank of England has warned consumers to expect higher costs this year as a result of the conflict in the Middle East, despite falling oil prices as the US and Iran near a peace deal.
Speaking after the Bank kept interest rates on hold at 3.75%, Andrew Bailey said there was “still some inflationary pressure in the pipeline” after the conflict pushed up energy prices.
The Federal Reserve held interest rates steady in the first meeting led by Kevin Warsh. The decision to maintain rates for a fourth-straight meeting was supported by all 12 members of the Federal Open Market Committee, but new quarterly projections by some Fed officials anticipate a rate hike by the end of the year. Amna Nawaz discussed the future of the Fed under Warsh with David Wessel.
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