FOMC Rate Decision (June 2026): 3.50%–3.75% % (target range)

The Federal Reserve kept its benchmark federal funds rate unchanged at 3.50%–3.75% for the fourth consecutive meeting. With inflation still elevated at 4.2% YoY—a three-year high—and a resilient labor market, the FOMC voted 10-2 to hold. The updated dot plot now projects just one 25 bps rate cut for the remainder of 2026, a significantly more restrictive signal than markets had priced in. New Fed Chair Kevin Warsh presided over his first policy meeting.