Fed Holds Rates; Chairman Warsh Initiates Reforms, Omits Dot Plot

The Federal Reserve on Wednesday, June 17, 2026, maintained its federal funds rate target range at 3.5%-3.75% for the seventh consecutive meeting. New Chairman Kevin Warsh signaled a significant shift in his first press conference, announcing comprehensive operational reviews, drastically simplifying policy statements, and confirming he did not submit his individual interest rate forecast in the "dot plot." Warsh unveiled five working groups to review Fed communication, balance sheet policy, economic data sources, technological changes, and the inflation target framework. The FOMC statement was cut to approximately 130 words from 341, removing forward guidance. The updated dot plot showed 18 of 19 officials submitted forecasts, with a median projection for the federal funds rate rising to 3.8% by end-2026, up from 3.4% in March. Core PCE inflation forecasts for 2026 and 2027 also increased. U.S. equities initially declined post-announcement but pared losses as Warsh detailed reforms.