Key points from the Fed rate decision: rates unchanged, dot plot splits wider

Here are the key points from the Fed’s rate decision on Wednesday:

The Federal Open Market Committee unanimously voted to keep the benchmark interest rate unchanged in the target range of 3.5%-3.75%.

The “dot plot,” which reflects rate forecasts, showed officials were split on whether to raise rates before the end of 2026; 9 of the 18 officials expect a hike. The median rate forecast rose from 3.4% in March to 3.75% and shows rates falling to 3.6% in 2027.

One Fed official did not submit any rate forecast, and another did not provide a forecast for 2028.

The median forecast from Fed officials showed core inflation at 3.3% by the end of 2026, up from 2.7% in March; GDP growth is expected to be 2.2%, down from 2.4% previously.

The Fed shortened its policy statement, removed language about the possibility of further rate changes, and said the committee will achieve price stability.

The Fed said that despite high uncertainty caused by factors including conflict in the Middle East, economic activity continues to expand at a solid pace, with strong productivity growth and capital investment.

The Fed also said job gains are keeping pace with labor-force growth and the unemployment rate has changed little; inflation remains elevated, partly reflecting supply shocks that have pushed up prices in sectors such as energy.