Fed Holds Rates At 3.50%-3.75%, Sees Higher Inflation Ahead (UPDATED)

Editor’s Note: Article has been updated with additional information.
The Federal Reserve held interest rates unchanged at 3.50%–3.75% for the third straight meeting on Wednesday, as widely expected by market participants.
The FOMC statement noted that while economic activity has been expanding at a solid pace, job gains have remained low, and inflation remains somewhat elevated. 
Fed Governor Stephen Miran was the lone dissenter, voting in favor of a 25-basis-point rate cut.
The updated Summary of Economic Projections (SEP) pointed to higher inflation and slightly higher economic growth compared to December.

The Fed now sees PCE inflation at 2.7% in 2026, up from 2.4% projected in December.
Real GDP growth is now projected at 2.4% for 2026, up from 2.3% in December.






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