The US Federal Reserve, in its meeting that concluded moments ago, decided by a majority vote of its 12 members to keep interest rates unchanged at 3.75%, as expected, for the sixth consecutive meeting and in the first meeting under Chairman Kevin Warsh. The committee reiterated its commitment to maintaining price stability.

The Fed members lowered their economic growth forecast for this year, now projecting growth at 2.2% from 2.4% in the March forecast, and at 2.3% next year, unchanged from the March forecast of 2.0%. They raised their 2028 growth forecast to 2.2% from 2.1%.

The Federal Reserve’s preferred inflation gauge, the PCE (Public Expenditures) index, has been revised upwards. Fed members now expect the index to reach 3.6% this year, up from 2.7% in the March estimate. The forecast for next year has been raised to 2.3% from 2.2%, while the 2028 forecast remains unchanged at 2.0%. Core inflation forecasts have also been revised upwards, reaching 3.3% this year (up from 2.7%), 2.5% next year, and 2.1% in 2028.

The DETROIT report also shows a shift in expectations, with nine Fed members now anticipating one interest rate hike by the end of 2026.