FOMC holds rates steady

The Federal Open Market Committee (FOMC) decided to hold rates steady following its meeting Wednesday.

"The FOMC opted for a 'hawkish hold' in June, making no changes to the fed funds rate target but emphasizing concerns about inflation. New Chair Warsh has long been a critic of FOMC communications and its use of forward guidance, and the committee’s June statement was significantly shorter and less detailed than usual,” said America's Credit Unions Chief Economist Curt Long. “The FOMC’s economic projections, or so-called ‘dot plot’, showed that half of committee participants expect a rate hike in 2026. An increase in interest rates is clearly defensible given the solid condition of the labor market and rising inflation, but that will pile more pressure on borrowers in the short run. More than ever, credit unions stand out as the most affordable source of credit in the marketplace."