The Federal Reserve kept interest rates unchanged on June 17, but the real story isn’t what the central bank did. It’s what it’s now threatening to do next.
In his first FOMC meeting as chair, Kevin Warsh oversaw a unanimous 12-0 vote to hold the federal funds rate at 3.5% to 3.75%. That marks the fourth consecutive meeting with no movement. But the statement that accompanied the decision was stripped of any language hinting at future rate cuts, a deliberate pivot toward hawkishness that sent tremors through every asset class, crypto included.
The dot plot tells the story
Look at the numbers. Nine of the 19 committee officials now project at least one rate hike before 2026 ends. In March, that figure was zero.
The median forecast for where rates will land by year-end climbed to 3.8%, up from 3.4% in March’s projections.
