(The Center Square) – The Federal Reserve left interest rates unchanged last month, but its latest projections showed a committee that is increasingly divided over what comes next.
The median Fed official expects the federal funds rate to end the year at 3.8%, essentially where it is today. But the median hides an important shift beneath the surface.
Nine of the 18 officials who submitted interest-rate projections expect rates to end the year higher than they are today. Eight expect rates to remain unchanged, while only one expects a cut. In other words, 17 of 18 officials see no rate cuts this year, and half project that some additional tightening will be appropriate.
The economic projections help explain why.
The median official expects the…
