Fed Holds Rates Steady at 3.50–3.75% for Second Month

The Federal Reserve left its benchmark rate unchanged on June 17, 2026. Rates have fallen 150 basis points—that is, 1.5 percentage points—from June 2023's peak, but the pace has stalled. Only 75 basis points of cuts landed in the past year. The Committee wants proof that inflation is durably falling before cutting further. Markets had priced in one or two more cuts by year-end.