Fed Holds Steady as Hawkish Stance Takes Hold

The Federal Reserve is expected to hold interest rates steady at its July meeting after adopting a more hawkish stance in June.

This shift came as a surprise to investors, who had anticipated a slower pace of rate cuts earlier this year.

At the June meeting, the FOMC projected only one quarter-point rate cut for the remainder of 2026, down from three cuts forecasted in March.

The median year-end 2026 rate is now 5.1%, up significantly from 4.6% in March, signaling a continued focus on inflation control.