The US Federal ⁠Reserve held interest rates steady on Wednesday, but policymakers expect a hike in borrowing costs later this year amid growing concerns about inflation lodged above the US central bank’s 2 per cent target.

New quarterly projections showed nine Fed officials now anticipate a hike in rates by the end of 2026, and an updated policy statement removed language that had been used to flag the likelihood of further reductions in borrowing costs this year.

Indeed, the statement, in an early sign of ‌new Fed Chairman Kevin Warsh’s influence, removed any guidance about future rate moves altogether, with a revised format that simply stated the rate decision and reaffirmed the central bank’s intent to keep “ample reserves in the banking system”.

The shortened document, a return to a format similar to that used by former Fed Chairman Alan Greenspan, was approved by a unanimous 12-0 vote by the central bank’s Federal Open Market Committee.

Speaking in a press conference following the FOMC meeting, Warsh said the policy statement refrained from providing so-called forward guidance because it is not “well suited” to the current economic moment.

When it comes to the monetary policy outlook, “I can’t give you any forward guidance about what we’re going to do ⁠next. The good news is we’ll be meeting in six weeks.”