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macroJun 17, 2026, 7:05 PM

Fed Raises 2026 Rate Forecast to 3.8%, Lifts Inflation Projections

The Federal Reserve's latest dot plot shows policymakers now expect interest rates at 3.8% by end-2026, up from 3.4% in March, while also raising PCE inflation projections.

The Federal Open Market Committee (FOMC) released updated economic projections on Wednesday, revealing a higher interest rate path.

According to the dot plot, the median estimate for the federal funds rate at the end of 2026 now stands at 3.8%, compared to the 3.4% forecast in March. The new projection is also above the current midpoint of the target range.

Alongside the rate revision, the Fed lifted its forecasts for PCE inflation, indicating persistent price pressures.

Source: FXStreet Forex News