The Federal Reserve voted on Wednesday to keep its benchmark interest rate unchanged. At a subsequent press conference, Federal Reserve Chairman Kevin Warsh shared some of his views on the current state of the U.S. economy and its impact on monetary policy. However, for those familiar with the Fed's operations, perhaps even more significant were several procedural adjustments revealed by Warsh.

The following are five key points:

• No surprises:The market had generally expected the Federal Reserve to keep interest rates unchanged, and that indeed turned out to be the case. In explaining this decision, the Federal Open Market Committee emphasized a patient stance, stating: "The accumulation of more information will help the committee determine the appropriate policy stance to ensure that inflation returns to the committee's target of 2% in a timely manner."
• Hmm, an accident:If there was one moment that caught everyone's attention that afternoon, it was when Walsh revealed changes to the way meetings of the Federal Open Market Committee are conducted. By 2027, the committee will still hold 8 meetings, but one of those meetings will no longer involve voting on interest rates, nor will there be a statement following the meeting. The following year, the number of "strategic" meetings will increase to two, which means that, aside from emergency meetings, the committee will only have 6 opportunities left to adjust interest rates.
• Well, two surprises:The Federal Open Market Committee's decision to maintain its policy unchanged was within expectations, and it is not surprising that several members voted against it. However, one of those "no" votes came from member Lisa Cook, which is quite surprising. Members rarely vote against interest rate decisions, and Cook has never done so since taking her position in 2022. Beth Harker, the president of the Cleveland Federal Reserve, also opposed this decision. Both are likely to issue statements regarding their votes before the end of this week.
• The Impact of Artificial Intelligence:Wash took the opportunity to discuss the impact of artificial intelligence on economic growth, essentially stating that it is just one of many factors driving economic expansion; he believes that the current momentum of expansion remains strong.
• More about "seat rotation":The duration of the press conference after the September meeting has been shortened – from the usual about 45 minutes to around half an hour, which is comparable to the duration of events on Wednesday. In addition, reporters are limited to asking only one question, which is different from the previous practice where media members could typically ask “two questions and get one answer.” Finally, Walsh also adjusted the seating arrangement in the venue: last month, representatives from large media organizations were seated in the front row in a more casual manner; this month, however, the seating is arranged in reverse alphabetical order, which requires those holding microphones to be even more attentive at all times.

What do all parties have to say:

"The Federal Reserve is shifting towards patience. Given the uncertainties brought about by recent geopolitical developments, they seem more willing to wait for more information before determining the appropriate interest rate level." — Phil Camporeale, Chief Investment Strategist at JPMorgan Chase Wealth Management ( Phil Camporeale )

"The Fed still has time... but the policy direction is still clear. The Fed is still working to reverse the effects of some of the interest rate cuts from last year, and the two opposing votes highlight this tightening tendency. We expect a rate hike in December, and another one at the beginning of 2027." — Sima Shah, Chief Global Strategist at Principal Asset Management, Seema Shah

"We don't want to describe his communication style as particularly dovish or hawkish... After all, the Federal Reserve's policy responses are not black and white, binary in nature... The market has already adapted to Walsh's communication style, but it may still take some time to fully synchronize with it." — Thomas Simmons, Chief U.S. Economist at Jefferies ( Thomas Simons )