Fed Raises Interest Rates by 0.25% for First Time Since 2023

Benzinga · 2d ago

The Federal Reserve raised the federal funds target range by 25 basis points to 3.75%-4.00% on Wednesday, marking its first rate increase since 2023.

In its policy statement, the Federal Open Market Committee said, “inflation remains elevated. Today’s policy action will support a timelier return to the Committee’s 2 percent goal. “

The decision was unanimous.

The updated dot plot showed the median official projecting a year-end 2026 fed funds rate of 4.1%, up from June’s 3.8% and implying one additional hike by December.

The 2027 median moved to 4.1% from 3.6% in June.

Fed Chair Kevin Warsh is slated to hold the press conference at 2:30 p.m. ET.

This is a developing story…

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