Summary

• Kevin Warsh presided over his first FOMC meeting as Fed Chair – participants voted unanimously to keep policy rates unchanged at 3.5%-3.75% – but already there was the beginning of “regime change.”.
• The so-called easing bias in the statement was removed - the phrase, “additional adjustments to the target range for the federal funds rate” (meaning additional rate cuts).
• The big change referred to the “Reserve Management Purchases,” where the Fed purchased Treasury bills to ease liquidity strains.
• The Implementation Notes dropped the fixed purchase instruction and replaces it with “when appropriate.”.
• Warsh did not submit his own projections, so there were only 18 dots for the 19 participants.

Kevin Warsh presided over his first FOMC meeting as Fed Chair – participants voted unanimously to keep policy rates unchanged at 3.5%-3.75% – but already there was the beginning of “regime change.”

• The statement