Fed Raises Rates by 25 Bps to 3.75%–4.00%; 16 of 18 Officials See at Least One More Hike in...

Fed Raises Rates by 25 Bps to 3.75%–4.00%; 16 of 18 Officials See at Least One More Hike in 2026Just In: The Federal Reserve’s FOMC voted unanimously, 12–0, to raise the target range for the federal funds rate by 25 basis points to 3.75%–4.00%, while continuing its policy of maintaining ample reserves in the banking system. The FOMC said the U.S. economy continues to expand at a solid pace, domestic spending remains resilient, productivity growth and capital investment are strong, and the labor market is broadly stable. Uncertainty remains elevated, in part due to geopolitical developments. Inflation remains elevated, and the Committee said the rate increase is intended to support a timelier return to its 2% target.Wall Street Journal reporter Nick Timiraos said 16 of 18 participants projected at least one more rate increase in 2026, while few projected rates to end 2027 below 4%.

Source: Wu Blockchain