Federal Reserve raises rates by 25 basis points; Chair says inflation remains the primary concern

The Federal Reserve FOMC unanimously decided to raise interest rates by 25 basis points, lifting the federal funds rate target range to 3.75%—4%. Fed Chair Jerome Powell (沃什) stated that while the U.S. economy shows resilience, inflation remains too high and persistent, with the committee not yet confident that it is moving toward the 2% target. Powell emphasized that inflation, rather than economic growth, is the core issue. Following the announcement, gold prices dropped, the U.S. Dollar Index rose above 100, and U.S. Treasury yields increased. Interest rate futures are currently pricing in further hikes for the remainder of the year and an additional 75 basis points by June of next year.