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The Federal Reserve raised its benchmark interest rate to a range of 3.5% to 3.75%.
The Federal Open Market Committee is evenly split on the path of interest rates for the current year, with nine members projecting at least one increase and nine members projecting no change or a cut.
The median FOMC dot plot projection for the federal funds rate for the current year increased to 3.75% from 3.375%.
The Federal Reserve's updated economic projections forecast 2026 headline PCE inflation at 3.6%, a significant increase from the 2.7% projected in March.
The Federal Reserve raised its 2026 core PCE inflation forecast to 3.3%, up from 2.7% in its March projection.
The FOMC removed the "balance of risks" assessment from its policy statement and concluded with the sentence, "The committee will deliver price stability."
Diane Swonk of KPMG predicts the Federal Reserve will implement two more rate hikes by the end of the year.
The Federal Open Market Committee projects one interest rate cut in 2027 and one interest rate cut in 2028.
The FOMC's 2026 dot plot contained only 18 submissions, suggesting that Fed Chairman Kevin Warsh may not have submitted a projection.
The Federal Reserve's median projection for 2026 GDP growth was revised down to 2.2% from 2.4% in March.
The Federal Reserve projects the unemployment rate will be 4.3% in 2026, an upward revision of 0.1 percentage points from the March forecast.
Former Fed Vice Chair Rich Clarida believes the recent pressure in core inflation is more broadly based and not just a result of pass-through from energy prices.