Fed to Keep Rates Steady at New Chair's First Meeting

2026-06-17 06:35 By Joana Taborda 1 min. read

The Federal Reserve is widely expected to keep the federal funds rate unchanged at 3.50%-3.75% for a fourth consecutive meeting in June 2026, as policymakers navigate persistent inflation and uncertainty over the pace at which price pressures will ease.

This meeting will be the first under new Fed Chair Kevin Warsh, whose appointment was initially viewed as leaning toward interest rate cuts and policy easing; however, market expectations have since shifted toward a more hawkish stance.

Although the US and Iran have agreed to a provisional peace deal, oil prices remain above pre-war levels, while recent labour market data has pointed to continued strength in employment.

Investors will closely watch the Fed’s updated economic projections, including the “dot plot,” for signals on the future path of interest rates.

However, many analysts expect that new Chair Warsh will not participate in it.

Back in March, the Fed had previously projected one rate cut in 2026 and another one in 2027.



News Stream
Fed to Keep Rates Steady at New Chair's First Meeting
The Federal Reserve is widely expected to keep the federal funds rate unchanged at 3.50%-3.75% for a fourth consecutive meeting in June 2026, as policymakers navigate persistent inflation and uncertainty over the pace at which price pressures will ease. This meeting will be the first under new Fed Chair Kevin Warsh, whose appointment was initially viewed as leaning toward interest rate cuts and policy easing; however, market expectations have since shifted toward a more hawkish stance. Although the US and Iran have agreed to a provisional peace deal, oil prices remain above pre-war levels, while recent labour market data has pointed to continued strength in employment. Investors will closely watch the Fed’s updated economic projections, including the “dot plot,” for signals on the future path of interest rates. However, many analysts expect that new Chair Warsh will not participate in it. Back in March, the Fed had previously projected one rate cut in 2026 and another one in 2027.
2026-06-17
Fed Policymakers Suggest Rates May Need to Rise
A majority of Fed officials highlighted that some policy firming would likely become appropriate if inflation were to continue to run persistently above 2%, minutes from the FOMC meeting in April 2026 showed. To address the possibility of rate hikes, "many participants indicated that they would have preferred removing the language from the post-meeting statement that suggested an easing bias regarding the likely direction of the Committee’s future interest rate decisions“. However, several participants highlighted that it would likely be appropriate to lower interest rates once there are clear indications that disinflation is firmly back on track or if solid signs emerge of greater weakness in the labor market. The Fed kept the fed funds rate unchanged at the 3.5%–3.75% target range for a third consecutive meeting in April. The decision was not unanimous, and the 8-4 vote marked the first time since October 1992 that four officials dissented against a FOMC decision.
2026-05-20
Fed Holds Rates Steady for Third Straight Meeting
The Fed kept the federal funds rate unchanged at the 3.5%–3.75% target range for a third consecutive meeting in April 2026, in line with expectations. The decision was not unanimous, with Governor Miran voting to lower interest rates by 25bps and three other members objecting the language in the statement that suggested the central bank would eventually resume cutting rates. The 8-4 vote marked the first time since October 1992 that four officials dissented against a FOMC decision. The central bank reiterated that it will carefully assess incoming data, the evolving outlook, and the balance of risks in determining the appropriate stance of monetary policy, and stands ready to adjust policy as needed if risks emerge that could hinder the achievement of its objectives. In addition, the Fed noted that developments in the Middle East are contributing to a high level of uncertainty about the economic outlook. Meanwhile, Powell said he will remain Fed governor after his Chair term ends.
2026-04-29