FOMC Maintains Federal Funds Rate Amid Solid Economic Growth and Elevated Inflation

The Federal Open Market Committee (FOMC) maintained its target range for the federal funds rate at 3.50%–3.75% at its June meeting. The official statement noted that economic activity is expanding at a solid pace with strong productivity growth and capital investment, and job gains keeping pace with the workforce. However, inflation remains elevated relative to the Committee's 2% goal. Markets are currently pricing in at least one 25 basis point rate increase in 2026.