Fed Pauses Rate Cuts for Second Straight Meeting at 3.50–3.75%

The Federal Reserve held its benchmark interest rate unchanged at 3.50–3.75% on June 17, 2026, marking a second consecutive hold. Rates have fallen 150 basis points from their June 2023 peak of 5.00–5.25%, but the pace has slowed sharply—only 75 basis points of cuts in the past year. The Committee is watching for durable disinflation before resuming easing. Market expectations as of January pointed to one or two additional cuts before year-end.