Bloomberg&#x27;s Lisa Abramowicz and Scarlet Fu break down the Federal Reserve&#x27;s latest policy decision on a special edition of Bloomberg Surveillance. Federal Reserve officials left interest rates unchanged and were split over whether they expect to raise rates this year. Policymakers’ new projections indicated nine officials foresee at least one quarter-point hike this year, with six anticipating at least two. Another nine expected no move or a cut. Notably, only 18 officials out of 19 entered their projections for rates at the end of 2026. The absence of an entry suggests new Chairman Kevin Warsh, who has been critical of so-called forward guidance, declined to submit a rate forecast. In its first gathering under Warsh’s leadership, the Federal Open Market Committee voted unanimously Wednesday to hold its benchmark federal funds rate in a range of 3.5% to 3.75%. See omnystudio.com/listener for privacy information.

Instant Reaction: The Fed Decides

Bloomberg Surveillance

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**Podcast:** Bloomberg Surveillance

## Transcript

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Bloomberg Audio Studios. Podcasts. Radio. News. This is a breaking news update from Bloomberg. Instant reaction and analysis from our 3,000 journalists and analysts around the world. The Warsh Fed holds the benchmark rate to 3.5% to 3.75%. Significantly changes the statement and splits evenly over whether there will be a rate cut this year.

They see a rate increase this year. They see one cut each in 2027 and 2028. Nine members see at least one increase this year, with six of them seeing two moves, but nine see no moves or a cut. The median dot this year does move to 3.75% from 3.375%. However, for 2026, there are only 18 dots, suggesting the Fed chairman did not enter one.

He said he doesn't believe in the dot plot. Two members did not submit a dot for 2028. The statement was cut to four paragraphs. The first, the vote unanimous. Then the decision, along with the statement that the committee reaffirmed its policy of maintaining ample reserves in the banking system. The second and third graphs are the economic assessment. Activity is expanding at a solid pace, despite elevated uncertainty that owes, in part, to conflict of the Middle East.

Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little. Inflation remains elevated relative to the committee's 2% goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. There is no balance of risks anymore. The statement concludes the committee will deliver price stability.

All 19 members of the co...

Instant Reaction: The Fed Decides

Transcript

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Every day you wait, your competitors are finding
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Instant Reaction: The Fed Decides

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.