US Fed begins Warsh era with hold on interest rates, may hike later this year

The US Federal ⁠Reserve held interest rates steady on Wednesday, but policymakers expect a hike in borrowing costs later this year amid growing concerns about inflation lodged above the US central bank’s 2 per cent target.

New quarterly projections showed nine Fed officials now anticipate a hike in rates by the end of 2026, and an updated policy statement removed language that had been used to flag the likelihood of further reductions in borrowing costs this year.

Indeed, the statement, in an...