Washington, United States: The US Federal Reserve on Wednesday held interest rates steady as expected at Kevin Warsh's first meeting in charge of the central bank, raising its year-end inflation expectations and projecting a rate hike by the end of 2026.
The Fed decided to hold rates steady at 3.50 to 3.75 percent for the fourth consecutive meeting, with the vote being unanimous for the first time in a year.
Policymakers said economic activity was "expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East."
"Inflation remains elevated relative to the Committee's 2-percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy."
Fed leaders also released their Summary of Economic Projections on Wednesday, raising year-end PCE inflation expectations to 3.6 percent from 2.7 percent in March, as the world's largest economy grapples with price increases at a three-year high.
