Warsh Fails Market Test with Dovish Rate Decision

The Federal Reserve's decision to maintain interest rates at 3-1/2 to 3-3/4 percent marks a significant departure from market expectations, which had anticipated more hawkish measures under new Fed Chairman Kevin Warsh.

Warsh is seen as having delivered for President Trump, instead of testing the market with tougher monetary policy.

The Committee's decision was made in support of the Federal Reserve's dual mandate and aims to maintain ample reserves in the banking system.