Fed keeps interest rates unchanged, says hikes may be coming later this year

The Federal Reserve maintained interest rates but indicated potential rate hikes in 2026 to address persistent inflation. Nine policymakers now support a hike, and six suggest multiple increases. Kevin Warsh, the newly appointed Fed chair, did not forecast future policy changes, while President Donald Trump has pressured the Fed for lower rates. Inflation remains at 4.2% due to rising oil and fuel costs linked to the war in Iran.