Kevin Walsh
The U. S. Federal Reserve announced Wednesday that it will continue to keep the target range for the federal funds rate unchanged at 3.5% to 3.75% . The decision, the fourth in a row this year, was widely expected.
The median forecast for the Fed funds rate in 2026 rose to 3.8 percent from 3.4 percent in March, according to a summary of economic forecasts released at the same time. That means fed officials expect to raise rates this year.
The fed also sharply increased its median forecast for personal consumption expenditure price inflation this year to 3.6 per cent from 2.7 per cent in March, and for core inflation this year to 3.3 per cent from 2.7 per cent, according to the summary of economic forecasts. The Fed cut its forecast for growth this year to 2.2 percent from 2.4 percent.
Federal Reserve chairman Kevin Walsh said in his first press conference as Central Bank chairman Monday that policy makers are committed to“Achieving price stability.”. He admitted inflation had been well above the Fed’s 2 per cent target and said: “Persistently high prices are a burden on the American people.”