WASHINGTON — The U.S. Federal Reserve opened a two-day meeting of its policy-setting Federal Open Market Committee (FOMC) on Tuesday, with inflation remaining above the central bank’s long-term target and financial markets closely watching for signals on the future path of interest rates, according to the Federal Reserve and economists.
The June 16-17 meeting is the Fed’s fourth scheduled policy gathering of 2026 and includes the release of updated economic projections and a press conference following Wednesday’s policy decision, according to the Federal Reserve’s published calendar.
The meeting is also the first under Federal Reserve Chair Kevin Warsh, who assumed leadership of the central bank in May. Investors and economists have said the meeting will provide an early indication of how Warsh intends to approach monetary policy amid persistent inflation pressures and recent volatility in energy markets.
Financial markets broadly expect the Fed to leave its benchmark interest rate unchanged at the current range of 3.50% to 3.75%, according to economists surveyed by financial media and market expectations cited ahead of the meeting.
Inflation remains a central concern for policymakers. Reuters reported that inflation is still running more than one percentage point above the Fed’s 2% target, reflecting the lingering effects of higher energy prices and other cost pressures. Recent declines in oil prices following diplomatic developments involving Iran have eased some concerns, but officials have not indicated whether that will significantly alter the inflation outlook.
Warsh is expected to address inflation, economic growth and interest-rate policy during a news conference scheduled after the committee releases its decision on Wednesday. Reuters reported that analysts will be paying close attention to any changes in the Fed’s economic forecasts and guidance regarding future policy moves.
“The policy statement is only one part of the story,” economists and market participants told Reuters ahead of the meeting, noting that updated projections and comments from the chair are likely to receive significant scrutiny.
The Federal Reserve’s previous meeting, held in late April, left interest rates unchanged. Minutes from that session showed officials remained focused on returning inflation to target while monitoring labor-market conditions and broader economic developments.
The June meeting comes as policymakers balance inflation concerns against signs of steady economic activity. Officials have not publicly signaled any immediate change in policy, and details of the committee’s deliberations will remain confidential until the meeting concludes.
The FOMC is scheduled to announce its decision on Wednesday afternoon, followed by the release of updated economic projections and Warsh’s first post-meeting press conference as Fed chair.
