Fed holds benchmark rate at 3.5%-3.75% as 2026 median projection rises to 3.75%

The Federal Open Market Committee unanimously voted to keep its benchmark interest rate in a 3.5%-3.75% target range. The dot plot shows the median projected end-2026 rate rising to 3.75%, up from 3.4% in March, while the median 2026 core PCE inflation forecast was raised to 3.3% from 2.7%. Officials lowered the 2026 GDP growth forecast to 2.2%. The policy statement removed language about possible further rate adjustments and said the committee will deliver price stability.