(LEAD) Fed holds key interest rate steady under new Chair Warsh, projects higher rate this year (opens original article in a new tab)

The U.S. Federal Reserve kept its benchmark interest rate unchanged for the fourth straight time under new Chair Kevin Warsh, while projecting a higher year-end rate and inflation than previously estimated.

• U.S. Federal Reserve held benchmark interest rate steady at 3.5-3.75 percent range for fourth consecutive time
• Fed's median projection shows federal funds rate expected to reach 3.8 percent by end of 2026, up from 3.4 percent in March
• PCE inflation projected at 3.6 percent by end of 2026, up from 2.7 percent in March
• U.S. GDP growth forecast for 2026 down to 2.2 percent from 2.4 percent in March