Fed holds rates at 3.5%-3.75% in Warsh’s first meeting as chair
What’s new: Fed projections showed some officials expect a rate hike by year-end, even as all 12 voting members backed no change.
The Federal Reserve left its benchmark interest rate unchanged at 3.5% to 3.75% in Kevin Warsh’s first policy meeting as chair, extending a four-meeting hold. All 12 members of the Federal Open Market Committee supported the decision. At the same time, new quarterly projections pointed to a possible shift later this year, with some Fed officials expecting one rate increase before the end of 2026. In his first press conference as chair, Warsh signaled a different public style from past Fed leaders and argued that strong growth, low inflation and solid employment can coexist. The decision and projections come as markets gauge whether the central bank will stay on hold or tighten again in coming months.