US Stock Market: Analysts see inflation driving Fed's hawkish shift under Warsh

The US Federal Reserve kept its policy rate unchanged but signalled a hawkish shift under new Chair Kevin Warsh, with nine FOMC members now projecting at least one rate increase before end-2026. Updated forecasts show slower 2026 growth and higher inflation expectations, while the revised statement dropped easing-bias language. US equities edged lower, Treasury yields rose, and the dollar strengthened, pointing to headwinds for emerging market equities and currency including India.