Federal Reserve Holds Interest Rates Steady at Fifth Consecutive Meeting
The Federal Open Market Committee (FOMC) voted to keep the federal funds rate unchanged in the range of 3.50-3.75% for the fifth consecutive meeting, with a vote split of 9-3. This decision maintains the benchmark interest rate at its lowest level since November 2022. Market expectations currently reflect pricing for two potential 25-basis point hikes in 2026, followed by no further changes through 2027. Fed officials' year-end projections show a projected range of rates between 3.6% and 4.1%, as outlined in the June 2026 dot plot. The decision underscores continued caution from policymakers amid evolving economic conditions.
