Fed Leaves Rates Unchanged, Projections Over Hikes Are Split

• The Fed held its benchmark interest rate in the 3.5%-3.75% range with a unanimous vote.
• Policymakers were split on future rate moves, with nine members seeing at least one rate increase this year, while others foresaw no moves or cuts.
• Economic projections for this year showed higher PCE headline inflation (3.6% from 2.7%) and core inflation (3.3% from 2.7%), while GDP and unemployment forecasts remained relatively stable.
• The Fed committee reaffirmed its policy of maintaining ample reserves and delivering price stability.

The Federal Reserve unanimously voted to keep its benchmark interest rate at 3.5%-3.75%. While rates were held, updated economic projections revealed a split among policymakers on future rate hikes, with some forecasting increases this year. Inflation forecasts for the current year were significantly raised, though the Fed reiterated its commitment to price stability.