Fed rate decision highlights: Dot plot divisions widen, policy statement wording adjusted

## Key Points of the Fed Rate Decision The following are the key points from the Fed's Wednesday rate decision: - The FOMC voted unanimously to keep the benchmark rate unchanged in the target range of `3.5%-3.75%`. - The dot plot, which reflects rate projections, shows officials are divided on whether to raise rates before the end of `2026`. Nine of the `18` officials foresee a rate hike, and the median rate projection rose to `3.75%` from `3.4%` in `March`; the median also shows rates falling to `3.6%` in `2027`. - One Fed official did not submit any rate projection; another official did not provide a rate projection for `2028`. - The median projection of Fed officials shows core inflation at `3.3%` by end-`2026`, up from the `2.7%` forecast in `March`; GDP growth is expected to be `2.2%`, lower than the previous forecast of `2.4%`. ## Policy Statement Wording Changes - The Fed streamlined the policy statement, removing language about possible further rate adjustments and stating that "the Committee will achieve price stability." - The Fed said, "Despite high uncertainty due to factors such as the Middle East conflict, economic activity continues to expand at a solid pace," and "productivity growth and capital investment are strong." - The Fed said employment growth "keeps pace with labor force growth, and the unemployment rate has changed little"; inflation remains elevated, "partly reflecting supply shocks that have led to higher energy prices and prices in other sectors." ## Event Background Topic: Fed holds rates steady, streamlines statement to remove rate-cut bias