Federal Reserve officials project inflation will cool to 2.3 percent in 2027 from an estimated 3.6 percent this year, offering a longer-term outlook after the central bank held its benchmark rate steady at 3.50–3.75 percent on Wednesday.
The forecasts accompanied the fifth consecutive pause since December, a decision backed by nine members of the policy committee with three dissenters favoring a quarter-point increase. In June, half of the 18 surveyed Fed members anticipated at least one rate hike before year's end, a sentiment echoed as observers now expect a move at the September 16 meeting, the central bank's next scheduled announcement.
Chair Kevin Warsh, who took the helm earlier this year, has presided over two consecutive holds since his first meeting in June.