Fed holds rates steady at 3.5%-3.75% as June discount rate minutes reveal divided outlook

The Federal Reserve Board of Governors released minutes from its discount rate meetings on June 8 and June 17, 2026, confirming what markets had largely anticipated: the central bank is holding firm on rates while quietly debating what comes next. The federal funds rate stays parked at 3.5%-3.75%, but the 10-2 vote split tells a more interesting story than the headline number.

What the minutes actually say

The discount rate meetings, which set the rate at which the Fed lends directly to depository institutions, are a less glamorous cousin of the main FOMC rate decision. The discount rate moves in lockstep with broader monetary policy, so the minutes serve as a secondary lens into the Fed’s collective thinking.

The June Economic Projections revealed a narrow tilt among officials toward one potential rate hike in 2026 before a pivot to cuts.

Chair Kevin Warsh notably did not submit a personal projection, which is itself a data point.