US Fed keeps rates unchanged for fourth straight meeting at 3.5%–3.75%: 5 key takeaways (opens original article in a new tab)

The US Federal Reserve kept interest rates unchanged at 3.50%-3.75% for the fourth straight meeting, citing uncertainty around inflation and economic growth. The Fed raised its year-end PCE inflation forecast to 3.6% and noted that nine of 18 policymakers expect rate hikes this year. The unemployment rate is projected at 4.3% by year-end, with GDP growth forecast at 2.2% in 2026.

• US Fed keeps interest rates unchanged at 3.50%-3.75% for fourth consecutive meeting
• Fed raises year-end PCE inflation forecast to 3.6% from 2.7%
• Nine of 18 policymakers expect rate hikes this year due to elevated inflation and oil prices
• Unemployment rate projected at 4.3% by year-end, lower than previous forecast
• US GDP growth projected at 2.2% in 2026, slightly below March forecast
• Policymakers remain divided on rate path with some expecting hikes and others no change