Federal Reserve Hikes Rates by 25 Basis Points, Signals Hawkish Outlook

The Federal Reserve raised the benchmark interest rate by 25 basis points to a range of 3.75%–4.00%. The latest Summary of Economic Projections and dot plot suggest an additional rate hike is expected before the end of the year, with high interest rates likely to persist through 2027. Officials cited persistent inflation and economic resilience as reasons for maintaining a hawkish monetary policy stance.