Fed raises rates by 25 basis points in first hike since July 2023
The widely expected move places the U.S. Federal Reserve's benchmark fed funds rate range at 3.75%-4.0%.
The U.S. Federal Reserve tightened monetary policy for the first time in more than three years on Wednesday.
In a nearly-universally anticipated move, the central bank lifted its benchmark fed funds rate range by 25 basis points to 3.75%-4%.
The vote to hike rates was unanimous, and the “dots” signal an expectation for one more rate hike in 2026.
“Economic activity is expanding at a solid pace,” said the FOMC in its policy statement. “While uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient … Inflation remains elevated. Today's policy action will support a timelier return to the Committee's 2 percent goal. The Committee will deliver price stability.”