The US Federal Reserve has held the benchmark interest rate steady and policy makers expect a hike in borrowing costs later this year amid growing concerns about inflation lodged above the United States central bank's two per cent target.
New quarterly projections showed nine Fed officials anticipate a rate hike by the end of 2026 and an updated policy statement removed language that had been used to flag the likelihood of further reductions in borrowing costs in 2026.
Indeed, the statement, in an early sign of new Fed chairman Kevin Warsh's influence, removed any guidance about future rate moves altogether, with a revised format that simply stated the rate decision and reaffirmed the central bank's intent to keep "ample reserves in the banking system."
