As of its June 16-17, 2026 meeting, The Federal Reserve announced that it is keeping the federal funds rate unchanged, at 3.5% to 3.75%. This is the fourth rate announcement of 2026. The previous three announcements, in January, March, and April, also left the rate unchanged. The decision came after the Federal Open Market Committee’s June meeting.
According to the Federal Reserve’s press release, the FOMC voted to hold the benchmark federal funds rate steady in a range of 3.5% to 3.75%. Unlike April’s divided 8-4 decision, which marked the most dissenting votes since October 1992, this meeting was unanimous, with the committee voting 12-0. The statement itself was notably shorter than recent ones, and it dropped earlier language that had pointed toward future rate cuts.
Inflation is running above the Fed’s 2% long-term target, in part due to higher energy prices tied to conflict in the Middle East, keeping the Fed from moving toward cuts. The committee raised its 2026 inflation projection to 3.6%, up from 2.7% in March. On the labor market side, the unemployment rate held at 4.3%.
The Fed will continue monitoring incoming data on jobs, prices, and global financial conditions before making any further adjustments. This meeting was also notable as the first led by new Chair Kevin Warsh, who took over after Jerome Powell’s term expired in May. In the committee’s updated projections, the median year-end rate rose to 3.8% from 3.4% in March, with policymakers pushing any rate cuts into 2027 and 2028.
The Federal Reserve’s 2026 Interest Rate Announcement Schedule
The Federal Open Market Committee (FOMC) meets eight times a year and announces its decision on what to do with the benchmark interest rate. The schedule for 2025 is as follows:
- January 28-29
- March 17-18
- April 28-29
- June 16-17
- July 28-29
- September 15-16
- October 27-28
- December 8-9
Read the full June 17th FOMC statement below:
The Federal Open Market Committee approved the following statement for release by a 12 – 0 vote:
The Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent, in support of the Federal Reserve’s dual mandate. The Committee reaffirmed its policy of maintaining ample reserves in the banking system.
Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East. Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little.
Inflation remains elevated relative to the Committee’s 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. The Committee will deliver price stability.
What is the Benchmark Interest Rate and What Does it Mean for Homebuyers and Homeowners?
It’s important to look at the broader economic picture when buying or selling a home. These interest rate decisions can have a direct impact on your wallet. When buying a home, most people need to borrow the required funds in the form of a mortgage. The mortgage interest rate refers to the percentage a borrower pays to a lender on the funds borrowed for the purchase. Your lender determines your interest rate based on various factors such as credit risk, market conditions, and of course, the benchmark federal funds rate.
Your mortgage rate isn’t the same as the benchmark rate, but they are connected. The federal funds rate is set by the federal government at its scheduled meetings. It is used to influence the interest rates lenders offer on other types of loans—like mortgage loans. When getting a mortgage rate, lenders take into account the benchmark rate, alongside other factors like your debt-to-income ratio and credit score.
Now that you’re more educated on interest rates and how they may impact your home purchase and investment, you could be ready to start home hunting. Your REMAX agent will be there to guide you, every step of the way.
