WASHINGTON — The U.S. Federal Reserve left interest rates unchanged this week, maintaining its benchmark federal funds rate at 3.5% to 3.75% as policymakers cited persistent inflation and continued economic uncertainty, according to the central bank’s policy statement released on Wednesday.
The decision, reached unanimously by the Federal Open Market Committee (FOMC), marked the fourth consecutive meeting in which rates were left unchanged. It was also the first policy meeting chaired by Federal Reserve Chair Kevin Warsh, who assumed leadership of the central bank earlier this year.
In its statement, the Fed said economic activity was “expanding at a solid pace despite elevated uncertainty,” while noting that inflation remained above the central bank’s long-term target. Officials cited higher energy costs and other supply-related pressures as factors contributing to persistent price increases.
“The Committee will deliver price stability,” the Fed said in its policy statement, reaffirming its commitment to bringing inflation back toward its 2% objective.
Updated projections released alongside the decision indicated that policymakers were divided over the likely path of interest rates later this year. According to the projections, several officials anticipated at least one rate increase before the end of 2026, while others expected no change or potential easing if economic conditions evolve differently.
The Fed’s latest forecasts also reflected concerns about inflation. Officials raised their expectations for price growth this year, while describing risks to inflation as tilted to the upside. At the same time, policymakers said the outlook remained subject to uncertainty, including developments affecting energy markets and global economic conditions.
Financial markets had broadly expected the central bank to leave rates unchanged. Investors and economists have closely monitored the Fed’s communications for indications of future policy moves as inflation remains above target and growth continues at a moderate pace.
Speaking after the meeting, Warsh emphasized the central bank’s focus on inflation while declining to provide detailed guidance on future rate decisions. Fed officials said policy actions would continue to depend on incoming economic data and evolving risks to the outlook.
As of Friday, the Federal Reserve had announced no immediate change to its policy stance beyond the June decision. Officials said they would continue monitoring inflation, employment and broader economic conditions ahead of the central bank’s next scheduled meeting.
