Federal Reserve Holds Rates Steady at 4.25%–4.50% The Fed kept rates unchanged, but with a slightly dovish tone as projections signal a path toward rate cuts in 2026. Key Highlights: Inflation Cooling: PCE inflation expected to fall from 3.0% (2025) to 2.1% (2027). Core PCE also moderates, signaling progress toward the 2% target. Rate Cuts Ahead: Fed's median rate projections fall: ▸ 3.9% (2025) → 3.6% (2026) → 3.4% (2027) → 3.0% (long run) Growth & Labor: GDP growth revised lower to 1.4%, whil
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