Deutsche Bank: Fed Under Warsh to Hold Rates, Hawkish Tone

Deutsche Bank's US economists expect the Federal Reserve's first meeting under Chair Kevin Warsh to leave interest rates unchanged while shifting to a more hawkish policy tone.

The assessment suggests the new Fed leadership will signal a less accommodative approach to monetary policy, even without an immediate rate move. Markets will likely focus on forward guidance and any changes to the statement's language.

The hawkish tilt could support the US dollar in the near term, though the impact will depend on the precise wording of the Fed's communication.