Fed Holds Rates at 3.5 to 3.75 Percent in Warsh Debut as 9 of 18 Policymakers Signal Possible 2026 Hike

The Federal Reserve kept its benchmark rate unchanged at 3.5 to 3.75 percent in Kevin Warsh's first meeting as chair, approving the decision unanimously. Updated projections showed nine of 18 policymakers now expect at least one rate hike before year end, citing inflation still above target as energy prices lift the outlook, with core PCE seen at 3.6 percent by December.