Fed Abandons 2026 Rate Cuts as Inflation Persists

The Federal Reserve held rates at 3.5%-3.75% on June 17, anchoring expectations that had shifted dramatically since spring. Projections for cuts have evaporated from two to zero, as persistent inflation forces a reversal of months-long easing signals. Officials now openly discuss potential rate hikes instead—a marked tilt from late 2025 consensus. The shift arrives under Kevin Warsh's new leadership.