Fed keeps rates unchanged as inflation remains elevated

The Federal Reserve held rates steady at a 3.5% to 3.75% range on June 17, marking the fourth straight meeting in 2026 without a cut. The central bank cited solid economic expansion and strong productivity, while inflation remains elevated due to energy and other supply shocks. The SEP suggested only one potential hike by year-end, signaling a hawkish tilt relative to prior expectations of a cut. Detroit economist Diane Swonk told the Detroit Economic Club that inflation may be entrenched, forecasting possible rate hikes twice in late 2026 and keeping policy restrictive into 2027, with oil-market dynamics and fertilizer costs likely contributing to higher consumer prices in the near term.