The Federal Reserve (Fed) has announced that interest rates will remain higher for at least three more years, even after the Fed stops raising rates and starts lowering them.

The Fed held rates at 5.25%-5.5%, a 22-year high, and provided new economic forecasts for interest rates, unemployment, GDP, and inflation.

Most Fed officials expect one more rate hike this year, and the Fed removed 0.50% of rate reduction for 2024 and 2025, predicting rates would end 2026 above long-term expectations.

Fed Chair Jerome Powell stressed that these estimates are estimates and not a plan.