Fed holds federal funds rate at 3.5%-3.75% in Kevin Warsh’s first meeting as chair

The Federal Reserve kept the federal funds rate unchanged at 3.5%-3.75% at the first FOMC meeting chaired by Kevin Warsh, with a unanimous vote. The statement said the economy is expanding at a solid pace and job gains have kept up with the workforce, while inflation accelerated in May to 4.2%, a three-year high, with core CPI at 2.9% year over year. The dot plot indicated policymakers see one rate hike in 2025 and one rate cut in 2027.