Overview
- Policymakers kept the federal funds rate at 3.50%–3.75% in an 11–1 vote, with Stephen Miran dissenting in favor of a quarter‑point cut.
- Updated forecasts lift 2026 GDP growth to 2.4% and inflation to 2.7%, while the unemployment outlook remains at 4.4%.
- The dot plot signals one rate reduction in 2026 and another in 2027; Powell said it is too early to size the energy shock and that a hike is not the base case.
- Powell vowed to remain on the Fed board and serve as acting chair until a successor is confirmed and a Justice Department inquiry concludes, as Kevin Warsh’s nomination awaits Senate approval.
- U.S. stocks fell after the briefing, and the ECB also held steady while warning an adverse energy scenario could drive eurozone inflation to 4.8% in 2027.