The Federal Reserve held interest rates steady at 4.25%-4.50% for a fourth straight meeting on Wednesday, aligning with market expectations, while signaling slower growth and hotter inflation ahead compared to its March forecast.
The June Fed statement struck a slightly more confident tone, noting that economic uncertainty has “diminished” compared to March, although stating that it remains elevated. The statement dropped the earlier assessment that risks of both higher inflation and unemployment had risen.
The description of the labor market was updated to say the unemployment rate “remains low,” instead of having “stabilized.”
The key highlight of the June meeting was the release of the Fed’s updated economic projections, with the “dot plot” — a collection of each policymaker’s expectations about future interest rates.
The median preference points to two cuts in 2025, unchanged from the March projection. The 2026 median dot was …