Fed holds rates steady as 9 of 19 officials project at least one hike in 2026 outlook shift

The Federal Reserve kept its key interest rate unchanged after its policy meeting, but nearly half of officials signaled they could support a rate increase later this year. Policymakers removed language that had implied their next move would be a cut and issued an unusually brief statement. In quarterly projections, 9 of 19 officials penciled in at least one hike this year and 6 backed two or more, a sharp shift from March projections that had anticipated a cut in 2026. The change reflects growing concern that inflation is at its highest level in three years and that higher rates may be needed if inflation does not ease.