Goldman Sachs: FOMC raises rates by 25 bps to 3.75-4.00%

Goldman Sachs reported that the Federal Reserve raised the federal funds rate by 25 basis points to 3.75-4.00%, marking the first hike since July 2023. The median dot plot suggests one additional hike in 2026, with long-term rate expectations rising to 3.25%. The Fed also adjusted its 2026 PCE inflation forecasts upward, signaling a hawkish stance as it remains cautious about reaching the 2% inflation target.