The dissents and the rate projections highlight divisions among policymakers that have emerged over whether weakness in the labor market or stubborn inflation represent the larger danger to the US economy.

In their new economic forecasts officials’ median projections pointed to one cut next year, and one in 2027. The rate outlook remained deeply divided, however. Seven officials indicated they favored holding rates steady for all of 2026, while eight signaled support for at least two.

Gold traders will now parse comments from Fed Chair Jerome Powell, especially what he’ll say about the direction of future monetary policy and economic projections, at his press conference at 2:30 p.m. Wednesday.  

Spot gold rose 0.2% to $4,215.10 an ounce as of 2:16 p.m. in New York. Silver was up 0.4%. Platinum and palladium fell. The Bloomberg Dollar Spot Index fell 0.3%.