According to TechFlow news on June 18th, as reported by CCTV News, the Federal Reserve announced on the 17th that it would keep the federal funds rate target range unchanged at 3.5% to 3.75%. This decision to maintain the rate for the fourth consecutive time this year is in line with market expectations.
The Fed’s Summary of Economic Projections released simultaneously shows that the median forecast for the federal funds rate by Fed officials for 2026 has been raised from 3.4% in March to 3.8%. This indicates that Fed officials anticipate implementing rate hikes this year. The Summary of Economic Projections also reveals that the Fed has significantly raised the median forecast for the Personal Consumption Expenditures (PCE) price index increase this year from 2.7% in March to 3.6%, and the median forecast for core inflation this year has risen from 2.7% to 3.3%. The forecast for U.S. economic growth this year has been revised down from the previous 2.4% to 2.2%.
On the 17th, Federal Reserve Chairman Kevin Warsh stated in his first press conference after assuming office as central bank chief that policymakers are committed to ‘achieving price stability.’ He acknowledged that inflation has been well above the Fed’s 2% target and said, ‘Persistently high prices are a burden on American families.’
