Fed Leaves Rates Unchanged, Projections Over Hikes Are Split

Summary

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