This anticipated decision raises the U.S. Federal Reserve's benchmark fed funds rate to a range of 3.75%-4.0%.
By James Van Straten|Edited by Stephen AlpherUpdated 36 min agoPublished 1 hr ago1 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Fed Funds (CoinDesk)SummaryShow- The Fed has increased the fed funds rate by 25 basis points, establishing a target range of 3.75% to 4.00%, marking its first increase since July 2023.
- This decision was largely expected by market analysts.
- The unanimous vote indicates the central bank is anticipating one additional rate hike in 2026.
On Wednesday, the U.S. Federal Reserve adjusted its monetary policy for the first time in over three years.
In a move that had been widely anticipated, the central bank raised its benchmark fed funds rate by 25 basis points, setting the new range at 3.75%-4%.
The decision to increase rates was unanimous, with the “dots” indicating an expectation for one more rate hike in 2026.
“Economic activity is expanding at a solid pace,” the FOMC stated in its policy announcement. “While uncertainty is still high due to geopolitical factors, domestic spending remains strong... Inflation continues to be elevated. Today's policy action will help facilitate a quicker return to the Committee's 2 percent goal. The Committee is committed to achieving price stability.”
Following the announcement, Bitcoin exhibited volatility but remained relatively stable around $75,700. U.S. stock markets continued to trend slightly upward, while bond yields saw a slight decrease.
Fed Chair Kevin Warsh's press conference will commence at 2:30 PM ET.
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