US Fed Meeting June 2026: No Rate Hikes! Why Kevin Warsh, 11 Other FOMC Members Voted For Status Quo?

Kevin Warsh has debuted his first FOMC policy meeting as the chairman. On Wednesday, FOMC with strong votes of 12-0, has decided to keep key federal fund rates steady at 3.50% to 3.75%. While FOMC stated that the economy is expanding solid, they warned yet again that inflation remains elevated.

FOMC decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent, in support of the Federal Reserve's dual mandate. The Committee reaffirmed its policy of maintaining ample reserves in the banking system.

In a statement, FOMC said, "Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East. Productivity growth and capital investment are strong."

"Job gains have kept pace with the workforce, and the unemployment rate has changed little," it added.

Lastly, FOMC pointed out that inflation remains elevated relative to the committee's target of 2%, "in part reflecting supply shocks that have driven price increases in certain sectors, including energy."

"The Committee will deliver price stability," said FOMC.