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The Federal Reserve held its benchmark interest rate in a range of 3.5% to 3.75%.
Nine members of the Federal Open Market Committee see at least one interest rate increase in the current year, with six of them seeing two increases.
The Federal Reserve's median dot plot for the current year has moved to 3.75% from 3.375%.
The Federal Reserve significantly increased its PCE headline inflation forecast for the current year to 3.6% from 2.7% in March.
The Federal Reserve raised its core PCE inflation forecast for the current year to 3.3% from 2.7% in March.
The final sentence of the Federal Reserve's statement, "the committee will deliver price stability," omits any mention of the full employment mandate.
Diane Swonk states that the Federal Reserve is concerned that underlying core inflation may be reaccelerating, particularly in the core superservices component.
Diane Swonk predicts the Federal Reserve will implement two interest rate hikes by the end of the year.
The Federal Reserve's median expectation is that inflation will not fall to 2.5% until more than six years into the current inflation shock.
The Federal Reserve projects one interest rate cut each in 2027 and 2028.
It is speculated that Federal Reserve Chairman Kevin Warsh did not submit a dot for the 2026 projections, as only 18 dots were submitted by the 19 members.
The Federal Reserve's policy statement was shortened to four paragraphs and now includes a reaffirmation of its policy to maintain ample reserves in the banking system.