FOMC - June 2026
June 17, 2026
As expected, the FOMC maintained its benchmark rate range at 3.50%-3.75%. The June meeting included updated economic projections and marked Kevin Warsh’s first meeting as Fed Chair. The Committee signaled continued concern about inflation, while emphasizing uncertainty around the outlook.
Rates and Market:
- Fed Funds Target: 3.50% - 3.75% (unchanged).
- Market Reaction: Treasury yields moved modestly higher on the front end of the curve. The U.S. dollar strengthened while equities were mixed pending Chair Warsh’s press conference.
- Markets have increasingly shifted toward a higher for longer outlook on rates, with some pricing suggesting no cuts in 2026 and growing discussion of a possible hike should inflation remain elevated.
The FOMC announced the following actions and analysis:
- 12-0 unanimous policy vote to leave rates unchanged.
- The Committee removed prior forward guidance that had pointed toward future rate cuts.
- Policymakers cited inflation remaining above the Fed’s 2% target and projected inflation to remain elevated through year end.
- The Fed’s unemployment forecast remained relatively stable near 4.4%.
Previous Report
FOMC - Apr 2026 (04/30/26)
Jerome Powell, in his last news conference as Fed Chair, unveiled the most divided vote during his tenure. This division may be a combination of the uncertainty caused by global events as much as it might be...