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Fed Holds Rates Steady, Signals Hike by Year-End

BY MT Newswires | ECONOMIC | 07:51 PM EDT

07:51 PM EDT, 06/17/2026 (MT Newswires) -- The Federal Reserve held interest rates unchanged for a fourth straight meeting on Wednesday but signaled one rate hike by the end of 2026 as inflation remains elevated, AFP reported.

The central bank kept its benchmark rate at 3.50% to 3.75%, with policymakers raising their year-end rate forecast in updated economic projections.

Fed Chair Kevin Warsh said the central bank would "deliver price stability" and acknowledged inflation has remained above the Fed's 2% target for years.

Warsh also pledged broad reforms at the Fed during his first meeting as chair, while noting that persistently high prices continue to burden Americans.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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