The Fed kept the federal funds rate unchanged at 3.50%-3.75% for a fourth consecutive meeting in June 2026, in line with expectations. This is the first meeting under new Fed Chair Kevin Warsh. New economic projections show that 9 officials see at least one quarter-point hike this year, with 6 anticipating at least two. Another 9 expected no move or a cut. Only 18 officials out of 19 entered their projections for rates at the end of 2026, which suggests the new Fed Chair did not submit his forecast, a move also anticipated. Meanwhile, GDP growth is seen lower in 2026 (2.2% vs 2.4% in March) but the forecast for 2027 was kept at 2.7%. PCE inflation was revised sharply higher to 3.6% from 2.7% for this year and for 2027, it was also raised to 2.3% from 2.2%. Policymakers noted that economic activity is expanding at a solid pace despite elevated uncertainty and job gains have kept pace with the workforce. Inflation remains elevated relative to 2% goal, in part reflecting supply shocks.