Fed holds rates steady, but 8 of 18 policymakers back a hike later in 2026

The Federal Reserve kept interest rates unchanged but removed language indicating the next move could be a cut, and it disclosed that 8 of 18 officials support a hike later in 2026. The shift went beyond market expectations and underscored rising inflation concerns along with the more hawkish stance of new chair Kevin Warsh. The decision jolted rate expectations, pushing U.S. Treasury yields higher and lifting the dollar, while adding pressure on equities and other risk assets.