WASHINGTON — The Federal Reserve held its benchmark interest rate steady following its latest policy meeting, the Federal Open Market Committee announced on June 17, 2026.
The FOMC voted unanimously, 12-0, to maintain the target range for the federal funds rate at 3.5 percent to 3.75 percent. The decision marks the first meeting chaired by Kevin Warsh, who succeeded Jerome Powell earlier this year.
"The Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent, in support of the Federal Reserve’s dual mandate," the FOMC said in its statement.
The rate has remained in that range since late 2025 following a series of cuts earlier that year. Officials cited solid economic activity, strong productivity growth and capital investment, and a labor market where job gains have kept pace with the workforce, according to the statement.
The meeting occurred amid elevated uncertainty, including from geopolitical tensions in the Middle East. Recent inflation readings have shown some pressure, though specific figures were not detailed in the immediate announcement.
Warsh, in his first major policy announcement as chair, oversaw a pared-down statement that removed previous language suggesting a bias toward future rate cuts. Updated economic projections indicated that a majority of officials now anticipate no rate cuts this year, with some projecting possible increases.
The central bank reaffirmed its policy of maintaining ample reserves in the banking system. It also approved maintaining the interest rate paid on reserve balances at 3.65 percent, effective June 18, 2026, the Board of Governors said.
The decision aligns with broad market expectations ahead of the meeting. No immediate reaction from the White House was detailed in initial reports, though President Donald Trump has previously expressed views on monetary policy.
Federal Reserve officials will continue to monitor incoming data as they assess the balance between maximum employment and price stability. Implementation of the policy will proceed through open market operations as directed.
Further details on the full set of projections and Warsh’s press conference remarks were released alongside the decision. The next FOMC meeting is scheduled for later in the summer.
