The Federal Reserve voted unanimously to keep interest rates parked at 3.50%-3.75% on Wednesday, marking the fourth consecutive meeting without a change.
The updated economic projections told a very different story than the one markets had been pricing in. The Fed’s preferred inflation gauge, the PCE index, saw its 2026 forecast jump from 2.7% to 3.6%.
A new chair, a new tone
This was Kevin Warsh’s first FOMC meeting as chair, having replaced Jerome Powell, who now serves as a governor on the board.
The post-meeting statement was noticeably trimmed down, with previous language hinting at a bias toward near-term rate cuts stripped out entirely.
