FOMC expected to hold rates but shift to neutral bias at Kevin Warsh’s first meeting as chair

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The Federal Open Market Committee is expected to leave interest rates unchanged at its Wednesday meeting while shifting its policy bias from easing to neutral, signaling that the next move could be either a cut or a hike. The consensus also sees no immediate change to balance sheet policy. The hawkish tilt at Kevin Warsh’s first FOMC meeting as chair comes despite President Trump’s preference for easier policy, with an emerging majority on the committee seeking a tougher stance on inflation. Earlier in the day, retail sales are forecast to rise 0.5 percent for a second straight month, business inventories are expected to increase 0.5 percent in April after a 0.9 percent gain in March, and pending home sales are projected to climb 0.9 percent in May following a 1.0 percent rise in April.

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