Wall Street banks expressed renewed confidence in the US dollar after new Federal Reserve Chairman Kevin Warsh chaired his first FOMC meeting on June 17, 2026, committing to price stability. The committee held the federal funds rate steady at 3.50%-3.75%. The dollar surged, gold cratered, and Bitcoin had a notable decline. Warsh, confirmed as Fed Chair in May, signaled the Fed is comfortable keeping borrowing costs elevated. He has signaled interest in reducing the Fed’s balance sheet, at approximately $6.8 trillion, to restore market price signals. Warsh also pointed to AI-driven productivity gains as a potentially disinflationary force. Analysts noted an improvement in Fed credibility and independence, impacting the dollar’s standing as the world’s reserve currency. The dollar strengthened sharply against major currencies, while gold and other precious metals saw steep declines following the June 17 statement. Bitcoin dropped notably, reflecting concern that Warsh’s hawkish posture could tighten liquidity conditions. Analysts observed bearish sentiment around digital assets, with fears that stringent monetary policies could reinforce the perception of Bitcoin as a speculative instrument.