News of the Day June 18, 2026
Federal Reserve Leaves Benchmark Interest Rate Unchanged

The Federal Reserve on Wednesday announced that it will hold interest rates steady due to concerns about elevated inflation amid the war in Iran, as Fed Chair Kevin Warsh’s tenure leading the central bank begins in earnest.

Fed policymakers voted 12-0 to leave the benchmark federal funds rate unchanged at its current range of 3.5% to 3.75%. The move follows the central bank’s decision to hold rates steady in January, March and April following three successive 25-basis-point rate cuts in September, October and December to close out last year.

The Federal Open Market Committee (FOMC), the central bank’s panel responsible for monetary policy moves, noted in its statement that inflation remains elevated above the central bank’s 2% goal, which it said was “in part reflecting supply shocks that have driven price increases in certain sectors, including energy.”

They also noted that job gains have kept pace with the workforce, while reiterating support for the dual mandate of price stability and maximum employment. Policymakers added that, “Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East.”

Warsh spoke to the media at his first post-meeting press conference on behalf of the FOMC.

“We recognize that inflation has been running well ahead of the Fed’s long-stated inflation goal of 2%. That’s been going on for more than five years. Persistently high prices are a burden for the American people, but the recent past need not be prologue,” Warsh said.

“I am pleased to report that members of the FOMC are unambiguous and unanimous – this committee will deliver price stability,” he added.