Fed keeps rates at 3.5%-3.75% in first Kevin Warsh-led decision, drops hint of a near-term cut

The Federal Reserve held rates steady for a fourth consecutive meeting, keeping the target range at 3.5%-3.75% in the first decision chaired by new Fed chief Kevin Warsh, approved unanimously. The policy statement removed wording that had pointed to a possible cut at the next meeting and instead stressed a data-dependent approach. Officials raised their 2024 inflation forecasts to 3.6% for headline CPI and 3.3% for core while trimming their 2026 GDP growth outlook. The latest dot plot shows 10 of 18 officials expecting at least one rate hike this year, reinforcing a tighter policy outlook.