world-economy

Fed Holds Rates Steady as Warsh Takes Chair, Signals Year-End Target of 3%

The Federal Reserve maintained its benchmark interest rate at Wednesday's policy meeting, the first under new Chair Kevin Warsh's leadership. The central bank's rate projections, outlined in its latest dot plot, point to a year-end 2026 federal funds rate target of 3 percent. The dot plot serves as the Fed's primary mechanism for communicating its expected policy trajectory to markets and the public. Investors focused on Warsh's inaugural meeting as head of the nation's central bank as they sought clarity on monetary policy direction. The steady rate decision reflects the Fed's current pause in its policy cycle.