Federal Reserve System (FED) FOMC Meeting summary

Policy decisions and monetary stance

• Maintained the federal funds rate at 3.5%-3.75% to support price stability and maximum employment.

• Interest rate paid on reserve balances is maintained at 3.65 percent, effective June 18, 2026.

• Primary credit rate is held steady at 3.75 percent.

• Reaffirmed the policy of ample reserves in the banking system.

• No forward guidance provided; policy statement shortened and simplified.

Economic outlook and projections

• Economic activity expanding at a solid pace despite global uncertainties, including Middle East conflict.

• Productivity growth and capital investment remain strong; unemployment rate stable with job gains matching workforce growth.

• Median projections: real GDP growth at 2.2% (2024), 2.3% (2025); PCE inflation at 3.6% (2024), 2.3% (2025); unemployment at 4.3%.

• Inflation remains above the 2% target, driven partly by supply shocks and energy prices.

Task force initiatives and reforms

• Five new task forces launched: communications, balance sheet, data, productivity/jobs, and inflation frameworks.

• Task forces to start within weeks, aiming for recommendations by year-end.

• Focus on first principles, hard questions, and actionable proposals for policy improvement.

• Communications task force to review SEP and overall Fed messaging.

• Data task force to explore new sources and analytic methods for real-time economic insights.