Fed Keeps Interest Rates Steady in Unanimous Vote Under New Chairman Kevin Warsh

Federal Reserve policymakers voted unanimously to leave interest rates unchanged at their meeting on Wednesday, with new Fed Chairman Kevin Warsh leading the 12-0 decision. This move comes as rising inflation prevents the delivery of lower rates demanded by President Donald Trump. Warsh, Trump's appointee to replace Jerome Powell, voted alongside Powell, who remains on the Fed's board of governors. The federal funds rate remains at its current range of 3.5% to 3.75%, where it has been since December, following three rate cuts last fall and a pause in January. Markets now anticipate at least one rate hike by the end of the year. For homebuyers, this means mortgage rates are likely to stay around 6.5% in the near term, with potential increases if inflation worsens. Warsh is scheduled to hold a press conference to outline his leadership approach and future policy boundaries, with analysts expecting him to defer specific rate change timelines to incoming economic data. The immediate impact of the FOMC decision on mortgage rates is considered limited, according to Jake Krimmel, a senior economist at Realtor.com®.