Fed maintains rates and forecasts one reduction in 2026

The Federal Reserve opted to maintain interest rates at their current levels on Wednesday, signaling a cautious approach as officials evaluate the economic risks stemming from the conflict involving the United States, Israel, and Iran. New projections from the central bank indicate that policymakers now anticipate only a single quarter-percentage-point reduction in borrowing costs by the end of 2026, a stance that remains unchanged despite political calls for more aggressive easing.