The Federal Reserve unanimously voted (12-0) to maintain the federal funds rate at 3.50%–3.75% during Kevin Warsh's first meeting as Chair. The June Summary of Economic Projections (SEP) revealed a hawkish shift, with the median "dot plot" now signaling no interest rate cuts for the remainder of 2026, moving away from the single 25-basis-point cut projected in March.
The Committee maintained its 2026 median projections for GDP growth at 2.4% and unemployment at 4.4%, while projecting PCE inflation at 2.7%. The policy statement notably removed the "easing bias" by dropping references to the "extent and timing of additional adjustments" to the target range. Officials emphasized that while the economy is expanding at a "solid pace," elevated inflation continues to require a restrictive stance to reach the 2% goal.