Rates unchanged at 3.50%–3.75%. Unanimous 12-0 vote (no dissents).
Fed says inflation remains elevated.
Dot plot (their rate projections) turned more hawkish:
9 members see at least 1 rate hike this year.
5 see 2 hikes.
1 even sees 3 hikes.
Only 8 see rates staying flat.
Just 1 sees a cut.
Market reaction right after: Bond yields ripping higher (especially longer-term ones), stocks dropping.
2 year bond yield ripping higher.
Rates are going higher. pic.twitter.com/GgEpL6PVzc
— QE Infinity (@StealthQE4) June 17, 2026
FED SIGNALS HIGHER RATE PATH, MARKETS PRICE HAWKISH SHIFT
Federal Reserve projections show the median funds rate rising to 3.8% in 2026 (from 3.4%), 3.6% in 2027, and 3.4% in 2028, with the long-run rate steady at 3.1%. Inflation is expected to stay elevated, with PCE not… pic.twitter.com/QgiKkcrczE
— *Walter Bloomberg (@DeItaone) June 17, 2026
FED'S WARSH PUSHED BACK AGAINST ANY DISCUSSION OF CHANGING THE INFLATION TARGET, STATING HE SEES “NO REASON” TO REVISIT THE 2% GOAL UNTIL THE FED HAS SUCCESSFULLY RETURNED INFLATION TO THAT LEVEL, REINFORCING THE CENTRAL BANK’S COMMITMENT TO PRICE STABILITY.
— First Squawk (@FirstSquawk) June 17, 2026
The Fed is not easing anytime soon. They removed the hope for rate cuts this year and are now openly talking about possible rate hikes if inflation stays sticky.
This is more hawkish than many expected. The market is reacting by selling bonds (yields up = bond prices down) and pressuring stocks, especially growth/tech names that like low rates.
New Fed Chair Kevin Warsh’s first meeting, and he’s coming out firmer on inflation.
Bottom line: Higher-for-longer (or even higher) rates are back on the table. Not great for risk assets in the short term.
https://www.cnbc.com/2026/06/17/fed-meeting-today-live-updates.html
Wow.
This is a nightmare scenario.
A fed with a leadership puppet who will not give credible statements and wants cuts.
But brutal dot plot of Fed officials expecting potentially *multiple* rate hikes. https://t.co/qS9hNwl4H3
— Adam Cochran (adamscochran.eth) (@adamscochran) June 17, 2026