Fed holds rates steady and removes cut bias from statement

The Federal Reserve kept its benchmark interest rate unchanged at 3.5% to 3.75% after its June meeting, with officials also shortening the policy statement and removing language that had suggested a future easing bias. The meeting was chaired for the first time by Kevin Warsh, who said the committee wants a simpler communication style and confirmed he did not submit a dot in the Fed’s rate outlook. The updated projections showed the median rate estimate at 3.8% by the end of 2026, implying that at least one rate increase could be possible this year. Officials also raised their inflation forecasts for 2026 while trimming their growth outlook slightly. The statement and projections reflected concern about persistent inflation, even as the labor market remained relatively firm and no immediate change in policy was made.