Fed Leaves Rates Unchanged, Projections Over Hikes Are Split

Bloomberg's Michael McKee reports on the first FOMC decision under Chair Kevin Warsh, where rates were held at 3.5%-3.75%. The dot plot revealed a split among policymakers on further rate increases this year, with the median projection rising. Inflation forecasts were revised sharply higher, reflecting supply shocks and energy cost pressures. - Fed leaves benchmark rate unchanged at 3.5%-3.75% - First decision under new Chair Kevin Warsh - Dot plot shows nine members expect at least one rate hike this year - Median 2025 dot rises to 3.75% from 3.375% - Significant upward revisions to PCE and core inflation forecasts - Statement cites elevated uncertainty from Middle East conflict - Productivity, capital investment, and job gains described as strong - No balance of risks language in the revised statement