Markets broadly expect the Fed to keep rates unchanged, but uncertainty centers on the economic path and how new chair Wash will run the central bank. The labor market remains resilient, consumer spending is strong, and inflation remains above target, though high price readings may ease later this year. Fed watchers say Wash is likely to reshape communication and decisionmaking—reducing forward guidance on rate expectations, possibly abolishing the dot plot (he may not submit his own forecasts),

Markets broadly expect the Fed to keep rates unchanged, but uncertainty centers on the economic path and how new chair Wash will run the central bank. The labor market remains resilient, consumer spending is strong, and inflation remains above target, though high price readings may ease later this year. Fed watchers say Wash is likely to reshape communication and decisionmaking—reducing forward guidance on rate expectations, possibly abolishing the dot plot (he may not submit his own forecasts), and cutting press‑conference frequency. Oxford Economics’ chief US economist Nancy Houten expects no June hike but says Fed wording will be tightened to remove dovish signals; some participants at the last meeting preferred more open language rather than implying an imminent cut. Markets have priced a chance of a hike later this year, while the baseline remains a December cut; Houten notes risk that easing could slip beyond December.