A less accommodative stance. The median forecast for the federal funds rate by the end of the year has risen to 3.8%, compared to 3.4% in March expectations. The forecasts for 2027 and 2028 have also increased to 3.6% and 3.4%, respectively, both higher than previous expectations. Inflation expectations have also risen, with personal consumption expenditures inflation now expected to reach 3.6% this year. Core personal consumption expenditures inflation is expected to be 3.3%, up from the previous forecast of 2.7%.

Traders increased the odds of a rate hike in July to 18% following the decision, according to CME FedWatch data. This figure represents an increase from previous expectations. Weeks ago, Bitcoin's price dropped after stronger-than-expected government employment data raised concerns about inflationary pressures on the Fed's dual mandate.
During his press conference after the meeting, Warch confirmed that the committee's commitment to fighting inflation remains clear and unanimous. He also announced the formation of five new working groups. These groups will address Federal Reserve communications, the central bank's balance sheet, its use of data sources, the impact of emerging technologies on jobs and productivity, and the overall inflation framework.