The Federal Reserve kept rates steady during its first meeting under Chairman Kevin Warsh, maintaining the 3.5% to 3.75% range in a unanimous vote (, subscription).

• This was the first unanimous vote since the June 2025 meeting.

Looking ahead: Fed officials鈥� quarterly economic projections suggested that rates may go up in the future, amid rising inflation this year. 聽

• 鈥淣ine of 19 officials penciled in at least one rate increase by year鈥檚 end, up from none in March. Just one foresaw a cut, down from 12.鈥�
• Officials still expect inflation to remain elevated, averaging 3.3% in 2026, more than the 2.7% average projected in March.
• Warsh declined to submit his own projection.

The statement: The Fed was tight-lipped in its , avoiding any suggestions about the path ahead.

• 鈥淚nflation remains elevated relative to the Committee鈥檚 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. The Committee will deliver price stability,鈥� it said.
• At the press conference, Warsh that the statement was 鈥渟impler鈥� than usual, saying 鈥淭hat statement just gives you the facts, as best we can judge it. Absent, also, is so-called 鈥榝orward guidance,鈥� which we agreed was not well-suited to the current policy conjuncture.鈥�

Changes at the Fed: Warsh also announced the creation of five task forces. Three task forces are charged with examining the Fed鈥檚 communications, balance sheet policy and use of existing data sources, while another will study the impact of new technologies like AI on productivity and jobs and the last will explore the 鈥渄rivers鈥� of inflation.

• He noted that these task forces will include both Federal Reserve staff and external experts, including representatives from the private sector and academia.