According to projections released Wednesday, policymakers see just one cut in 2026 — a sign that borrowing costs will likely remain near current levels rather than fall substantially in the months ahead.

The latest cut brings the target federal funds rate to a range between 3.5 percent and 3.75 percent, the lowest level in three years. This rate affects many consumer lending and savings rates throughout the country, either directly or indirectly, including mortgage rates.