Fed rate decision highlights: dot plot divergence widens, statement removes easing bias

Here are the highlights of the Fed's Wednesday rate decision:

The FOMC voted unanimously to hold the benchmark rate at 3.5%-3.75%.

The dot plot, reflecting rate projections, showed officials divided on whether to hike before end-2026. Nine of 18 officials expect a hike, with the median rate forecast rising to 3.75% from 3.4% in March; the median also shows rates falling to 3.6% in 2027.

One Fed official did not submit any rate projection; another did not provide a 2028 rate projection.

Fed officials' median projections show 2026 core inflation at 3.3%, up from 2.7% in March; GDP growth at 2.2%, down from 2.4%.

The Fed streamlined its policy statement, removing language about possible further rate adjustments, and stating "the committee will achieve price stability."

The Fed said, "Despite high uncertainty due to factors including the Middle East conflict, economic activity has been expanding at a solid pace" and "productivity growth and capital investment are robust."

The Fed said job gains "have kept pace with labor force growth, and the unemployment rate has changed little"; inflation remains elevated, "partly reflecting supply shocks that have driven up prices in sectors including energy."