In a marked shift from its previous projections, nine Fed officials forecast at least one interest rate increase this year, while the central bank also removed language from its policy statement that had suggested its next move would be a rate cut.
The unusually brief statement likely reflects the influence of new Fed chair Kevin Warsh, appointed by Trump, who has previously criticised the Fed for commenting too broadly on the economy.
Six policymakers projected two or more rate increases this year, a sharp change from March, when no officials pencilled in a hike and the committee as a whole forecast one cut in 2026.
The shift reflects growing concern about persistent inflation, which is running at its highest level in three years. Several Fed officials have recently warned that higher borrowing costs may be needed if price pressures fail to ease.
Another eight policymakers signalled support for keeping rates unchanged this year, while one forecast a cut. Warsh did not submit an interest-rate projection.
