The Federal Reserve predicts a rate hike in 2026 and maintains interest rates unchanged in 2027

On the 17th, the Federal Reserve implemented its first interest rate hike in three years. The median forecast of the dot plot shows that interest rates will be raised once this year, and will remain unchanged in 2027. Interest rates will decrease in 2028 and remain between 3.5% and 3.75% in 2029. The Federal Reserve has raised its long-term expectation for the federal funds rate to 3.2%, with a June forecast of 3.1%. 18 out of 19 policy makers submitted interest rate outlook forecasts, but Federal Reserve Chairman Kevin Walsh did not provide specific forecasts. The Federal Reserve's forecast shows an overall higher inflation rate this year and in the coming years. (Source: Jin Shi) AI interpretation: The Federal Reserve clearly conveyed its policy stance of maintaining high interest rates in the long term through a dot matrix, completely shattering the market's illusion of rapid interest rate cuts in the short term. The rise in the interest rate path directly reflects the decision-makers' high vigilance towards inflation stickiness, and this hawkish guidance will force the market to reprice asset valuations. The upward adjustment of long-term interest rate expectations marks a new stage in the tightening cycle of monetary policy, and the high interest rate environment will continue to substantially suppress economic growth. This decision-making path clearly indicates that the Federal Reserve prioritizes ensuring price stability, and financial markets must adapt to longer-term liquidity tightening pressures.