Welcome Avatar! It looks like things are playing out roughly as expected. Right now we’re surprised the sell off wasn’t more severe but the next few weeks will give us an indication of how much investors believe Warsh. He attempted to be neutral however the dot plot (expectations) signal for another hike this year.
More importantly, if you look at this, it suggests that 3% is the new normal for fed funds rate. They are essentially throwing in the towel on 2% until 2030 or so. This is fascinating because long-term inflation would be structurally higher in this scenario.