Fed Holds Rates, Now with Only 1 Dissenter, Sees Accelerating Inflation & GDP Growth

US Stock Market: Fed holds rates over 'uncertain' war impact

The US Federal Reserve held interest rates steady, defying President Trump's calls for cuts amidst persistent inflation and a shaky economic outlook influenced by the Iran conflict. Officials anticipate a single rate reduction by year-end, acknowledging solid economic expansion but noting subdued job gains and elevated prices. Projections indicate a 2.4% GDP growth for the fourth quarter.

Fed Holds Rates, now with Only 1 Dissenter, Sees Accelerating Inflation & GDP Growth

Dot Plot projections still point at 1 rate cut in 2026. Powell: “If we don’t see that progress [on inflation], then you won’t see that rate cut.”

Fed holds rates steady as expected, calls inflation somewhat elevated

The Federal Reserve held its policy rate steady on Wednesday, as was widely expected, citing somewhat elevated inflation and giving little indication when it might next cut short-term borrowing costs. Fed officials' economic projections indicated they expect to cut rates…

Expectations for the next Fed rate cut get pushed back after hot inflation report

Futures markets took any realistic chance of a cut off the table until at least December.

Inflation Isn't Coming Down As Quickly As Chair Powell Hoped; No Rate Cut Without 'Progress'

However, while the Fed's projections forecasted around two more rate cuts this year, he acknowledged that could change if inflation remains stubborn.