Fed Holds Rates Steady, Signals Two Cuts in 2026

The Federal Reserve left its benchmark rate unchanged at the June meeting, holding the target range steady for a fourth consecutive decision while it waits for clearer evidence that inflation is returning to target.

The updated dot plot now points to two quarter-point cuts before the end of 2026 — a slightly more dovish path than markets had priced. Treasury yields eased and the dollar softened modestly as traders pulled forward the expected timing of the first cut.