Fed holds rates at 3.5%-3.75% as Warsh starts overhaul

The Federal Reserve left its benchmark rate unchanged at 3.5% to 3.75% on Wednesday, but new Chair Kevin Warsh used his first post-meeting appearance to start reshaping how the central bank works. The Federal Open Market Committee voted unanimously to hold rates steady. Warsh said the meeting had a single policy proposal rather than multiple draft options, a break from past practice. He also rolled out task forces on Fed communications, the balance sheet, data, productivity and jobs, and the inflation framework. Warsh did not submit his own rate forecast to the Summary of Economic Projections, even as other policymakers did, signaling a different approach to how the Fed communicates its outlook.