The US Federal Reserve, in its meeting that concluded moments ago, decided by a majority vote to keep interest rates unchanged at 4.75%, as expected, for the second consecutive meeting in 2026. Member Stephen Miran favored a quarter-point rate cut.

The Fed members raised their economic growth forecasts for this year, now projecting growth at 2.4%, up from 2.3% in the December forecast. They also raised their forecast for next year to 2.3%, up from 2.0% in the December forecast, and increased the 2027 growth forecast to 2.1%, up from 1.9%.

The Federal Reserve’s consumer spending (PCE) inflation gauge, its preferred inflation measure, was revised upwards. Fed members now expect the index to reach 2.7% this year, up from 2.4% in December’s forecast. The forecast for next year was also raised to 2.2% from 2.1%, while the 2027 forecast remained unchanged at 2.0%. Core inflation forecasts were also revised upwards compared to December’s projections, now at 2.7% this year, 2.2% next year, and 2% in 2027.

In its DETROIT report, the Fed maintained its projections for future US interest rates, unchanged from December, with one rate cut expected this year and another in 2027.

The statement indicated that the committee will continue to monitor and analyze incoming economic data and is prepared to adjust its monetary policy stance as needed.

Markets are now awaiting the press conference with Federal Reserve Chairman Jerome Powell, scheduled for less than half an hour, where he will answer questions from reporters.