WATCH: New Fed chair Kevin Warsh holds first news conference after leaving interest rate unchanged

• The US Federal Reserve has abandoned its previous bias toward cutting interest rates as inflation has surged to nearly double the central bank's target. • This policy shift coincides with the beginning of the Kevin Warsh era at the central bank and follows escalating geopolitical tensions stemming from Donald Trump’s conflict with Iran.

• Asian stocks declined, with the MSCI regional equities gauge down 0.1% and South Korea’s Kospi dropping 0.6%, following a tech sell-off on Wall Street. • The downturn was driven by a pullback in semiconductor makers, which pushed the S&P 500 down 0.6% and the Nasdaq 100 down nearly 2%.

• Asian currency markets and the U.S. dollar remained largely muted as investors await the upcoming Federal Reserve interest rate decision. • While the Chinese yuan (USD/CNY) and Singapore dollar (USD/SGD) showed little movement, the South Korean won (USD/KRW) rose by 0.4%.

• NSE Indices, a subsidiary of the National Stock Exchange, has launched two new thematic indices: the Nifty Sugar & Ethanol and the Nifty Small Finance Banks & Microfinance Institutions (MFIs). • The Nifty Sugar & Ethanol Index tracks 15 FMCG sector stocks involved in sugar or ethanol production, selected based on their six-month average free-float market capitalization.

• Eurostat released 2025 data on household material welfare, showing that actual individual consumption (AIC) per capita across the 27 EU countries ranges from 73% to 145% of the EU average. • Luxembourg, Ireland, and the Netherlands reported the highest GDP per capita, while Greece, Bulgaria, and Latvia recorded the lowest levels.

• The Federal Reserve maintained its key interest rate on Wednesday but signaled that future rate hikes are likely. • Fed officials revised their year-end PCE inflation projection upward to 3.6%, a significant increase from the estimates provided in March.

• The Federal Reserve has maintained its target interest rate range for the fourth consecutive meeting, keeping borrowing costs elevated. • High interest rates on U.S. Treasury securities are directly increasing the federal government's overall cost of borrowing.

• Global markets rallied and oil prices plummeted to a three-month low following the opening of the Strait of Hormuz under the Trump Iran Deal. • Financial analysts Brian Brenberg, Dagen McDowell, Taylor Riggs, and David Bahnsen discussed the resulting economic implications and the impact on business investment.

• Fluctuations in interest and exchange rates are identified as primary financial indicators directly influencing consumer decision-making and investment strategies. • Changes in interest rates prompt individuals to adjust savings plans or reallocate funds to more effective investment channels to meet financial goals.

• The Federal Reserve unanimously decided to keep interest rates steady at a range of 3.5% to 3.75% during its first meeting under new chair Kevin Warsh. • Despite the hold, the Open Markets Committee signaled a potential rate hike before the end of the year, citing that economic activity is currently expanding at a "solid pace."

• SEC Chairman Paul Atkins appeared on "Mornings with Maria" to outline his "Make IPOs Great Again" agenda aimed at revitalizing public offerings. • Atkins discussed the SEC's strategic decision to withdraw its legal defense of climate disclosure rules established during the Biden administration.