Federal Reserve Chair Kevin Warsh's first policy meeting drew mixed reactions from economists, with attention centered on his decision not to submit a dot plot projection, his inflation messaging and his plans to reform the institution.

The Fed held rates steady at 3.50%-3.75% on Wednesday and reiterated its commitment to restoring price stability.

Dot Plot Decision Draws Scrutiny

Warsh's decision against submitting a dot plot projection drew attention from economists, particularly as the Fed's latest Summary of Economic Projections (SEP) pointed to a higher policy-rate path than officials had anticipated in March.

Former Fed economist Claudia Sahm said in a post on X that the SEP was intended to show the appropriate policy path needed to achieve the central bank's dual mandate over the next few years. "The Summary of Economic Projections has its flaws but it is an exercise in what's the appropriate policy to achieve the dual mandate over the next few years. Warsh refused to participate, and then refused to share his thinking in presser." Sahm added, "Throwing the national accounts statistics under the bus as FED CHAIR. srsly? Sigh."

Warsh said he did not submit a dot because he did not find individual rate projections helpful to the "current policy conjuncture."

Top economist Mohamed El-Erian, in an interview with CNBC, said investors were placing too much emphasis on the dot plot and viewing the meeting through the former Fed chair Jerome Powell-era framework.

Inflation Message Takes Center Stage

Economists also focused on the Fed's renewed emphasis on inflation, including its statement that "the committee will deliver price stability."

"Saying you will deliver on price stability without explaining how you might do it is empty words," Sahm said.

El-Erian said Warsh's remarks reflected concern with the central bank's inflation record, emphasizing that inflation has remained above the Fed's target for 63 consecutive months.

Warsh said that the Fed's 2% target will not be revisited until the Fed re-establishes its ability to hit it.

"Kevin Warsh is signaling that his Fed is one that will focus on inflation, and he doesn't seem to care about whether you believe he is focused on employment," economist Justin Wolfers said in his blog, 'Platypus Economics.'

Reform Agenda Signals New Direction

Beyond interest-rate policy, Warsh announced five task forces to review Fed communications, balance-sheet management, data sources, productivity and jobs, and the inflation framework.

El-Erian described the press conference as a "masterclass in central bank communication" and called the review process a "much-needed, reform-oriented breath of fresh air," in a post on X. He also praised Warsh's delivery as "noticeably more open, engaging, concise, and honest."