Fed Holds Rates Steady, but Warsh Era Signals Hikes Ahead This Year
The Federal Reserve kept the fed funds rate at 3.5%-3.75% for the fourth straight meeting but signaled hikes could come later this year as inflation stays elevated and the job market remains firm. The dot plot shows a hawkish tilt: eight officials see no change, three anticipate one hike, five see two hikes, and one sees four; one member projects a single rate cut. The statement dropped forward guidance as Warsh launches reforms in communications, balance sheet, data use, productivity, and the inflation framework. Inflation projections rose to about 3.6% headline and 3.3% core; May CPI 4.2% y/y, core PCE 3.3% in April; GDP growth for 2026 was trimmed to 0.2%-2.2% and unemployment around 4.3%. This marks a hawkish shift under new Chair Kevin Warsh with potential rate increases later this year.
- Fed holds interest rates steady in Warsh's first meeting, with more officials projecting hikes this year Yahoo Finance
- Fed leaves interest rates unchanged but signals higher rates are ahead CNN
- WATCH LIVE: New Fed chair Kevin Warsh holds first news conference after interest rate decision PBS
- Fed rate decision live: US central bank does not cut rates in first meeting chaired by Warsh Reuters
- US Fed begins Warsh era with hold on interest rates, may hike later this year South China Morning Post
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