The Federal Open Market Committee voted unanimously to maintain target interest rates at a range of 3.50% to 3.75%.
Statement: The FOMC said:
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Economic activity is expanding at a solid pace despite elevated uncertainty due in part to the conflict in the Middle East.
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Productivity growth and capital investment are strong.
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Job gains have kept pace with the workforce, and the unemployment rate has changed little.
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Inflation remains elevated relative to the FOMC's 2% goal, reflecting supply shocks that have driven price increases in certain sectors, including energy.
Going Forward: In its latest economic projections, the Fed projects a median federal funds rate of 3.8%, up from the 3.4% projection following its March meeting. One FOMC member projects a rate cut in 2026 while nine expect at least one hike.