U.S Fed holds rates at 3.5-3.75%

June 18, 2026 (MLN): The US Federal Reserve's Federal Open Market Committee (FOMC) voted unanimously 12-0 to keep the federal funds rate unchanged at 3.5 to 3.75%.

It also citied solid economic expansion even as elevated uncertainty  partly stemming from the Middle East conflict clouds the outlook, according to a press release issued by the Federal Reserve.

The Committee reaffirmed its commitment to maintaining ample reserves in the banking system.

It noted that productivity growth and capital investment remain strong, while job gains have kept pace with workforce expansion and the unemployment rate has held broadly steady.

Inflation, however, remains above the Fed's 2% target, with the Committee attributing persistent price pressures in part to supply shocks  particularly in the energy sector.

The FOMC pledged to deliver price stability.

Federal Reserve Chairman Kevin Warsh signaled a major shift in the U.S. central bank's approach as he chaired his first policy meeting on Wednesday, delivering what he described as a period of "regime change" at the Federal Reserve.

Kevin Warsh unveiled five new task forces focused on areas he said are "central to the broad conduct of monetary policy," indicating a review of the Fed's existing framework and practices.

In a notable break from tradition, Chairman Warsh declined to submit his own projection to the Fed's closely watched "dot plot," which outlines policymakers' expectations for interest rates and the economy over the short and longer term.

The Federal Open Market Committee's policy statement was also revamped, with Chairman Warsh describing the shorter version as more "curt" and direct.

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