economy
Federal Reserve holds interest rates steady but leaves door open to hike
Updated on: June 17, 2026 / 5:38 PM EDT / CBS News
TL;DR
- The Federal Reserve's FOMC decided to keep its benchmark interest rate unchanged at 3.5%-3.75%.
- Nearly half of FOMC policymakers expressed support for a rate hike later in the year.
- The 'easing bias' language was removed from the Fed's policy statement, signaling a shift.
- Federal Reserve Chairman Kevin Warsh highlighted a commitment to reducing inflation to the 2% target.
- Stock markets declined following the announcement, as investors had anticipated rates remaining steady.
- The Fed's updated economic projections indicate higher inflation expectations for 2026.
- This marks the first FOMC meeting presided over by Chairman Kevin Warsh.