Reasoning
With the federal funds target range at 3.50 to 3.75 percent and the June 2026 SEP median for the year end 2026 rate at 3.8 percent, nine of eighteen participants already project a rate above the current target range. Chair Kevin Warsh erased the prior cutting bias at the June 17 meeting, so any September hike would require a sharp reversal in incoming data that has not yet materialized. Historical base rates show that the FOMC has rarely hiked within a single quarter after explicitly signaling a pause.Key uncertainty
A hotter than expected August CPI print released two weeks before the September meeting could shift the median SEP dot upward.