The Federal Reserve kept interest rates at 3.5%-3.75% on June 18, signaling a hawkish shift, and expected to raise rates. According to the Federal Reserve, on June 18, the central bank maintained the federal funds rate target range at 3.5%-3.75%, with the policy statement passing unanimously with a 12-0 vote. This marked the first time since mid-2025 that no dissenting votes were cast. The decision was led by the successor to Fed Chair Powell, who presided over this decision, which maintained the rate unchanged for the fourth consecutive meeting since January. Under the new leadership, the policy statement underwent significant revisions, restructuring the format and removing forward guidance language. Economic forecasts reflect a more cautious outlook: the 2026 GDP growth forecast was lowered from 2.4% to 2.2%, while PCE inflation was raised from 2.7% to 3.6%. The rate decision dot plot shifted noticeably hawkish: currently, 9 Fed officials forecast rate hikes this year, whereas previously only 1 predicted rate cuts; this contrasts with the March forecast where 12 officials predicted rate cuts.