Federal Reserve holds interest rates steady

U.S. inflation is expected to remain elevated through the end of the year, Fed officials say in their latest forecast.

1. Frame 1The Federal Reserve keeps rates at 3.5% to 3.75% as high prices shape borrowing costs across consumer and business loans.
2. Frame 2The unanimous vote kept consumer and business borrowing costs anchored where they have been since December.
3. Frame 3Kevin Warsh led his first meeting with a shorter statement that removed the recent bias toward future cuts.
4. Frame 4Nearly half of policymakers signaled they could support a rate hike later this year if inflation keeps running hot.
5. Frame 5Stocks fell after the announcement, with the Dow down 500 points and the S&P 500 and Nasdaq off more than 1.2%.
6. Frame 6Investors now watch whether inflation forecasts pull the Fed toward hikes instead of the cuts markets expected.