Fed Holds Rates Steady as Inflation Outlook Skyrockets Under New Chair

The Federal Reserve announced it would maintain interest rates at 3.50% - 3.75%, marking the fourth consecutive pause under new Chair Kevin Warsh.

Warsh's first rate decision came as the Fed increased its inflation outlook to 3.6% for end-2026, up from 2.7% in March, driven by rising oil prices linked to the Iran conflict.

The five task forces established by Warsh will focus on diverse factors influencing monetary policy, including communications, balance sheets, data sources, productivity and jobs, and inflation frameworks.