Fed maintains rates, signals 2026 hike

The U.S. Federal Reserve has kept interest rates unchanged at a range of 3.5% to 3.75% for the fourth consecutive time, with a potential increase in 2026 due to elevated inflation risks. The meeting, led by Kevin Warsh, indicated that future guidance will depend on developments in inflation and the labor market, with a possibility of raising interest rates by 25 basis points by the end of the year.

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