Federal Reserve Hikes Interest Rates by 25 Basis Points to 3.75%-4% Range

The Federal Reserve FOMC unanimously voted to raise interest rates by 25 basis points to a range of 3.75%-4%, marking the first hike since July 2023. The Fed upgraded its economic growth projections for this year and next, noting robust expansion while emphasizing that inflation remains high. The dot plot indicates that 16 officials expect at least one more hike in 2026, with the median rate projected at 4.1% for both 2026 and 2027. Following the announcement, gold prices fell by approximately $100, the U.S. dollar index surpassed 100, and U.S. stocks declined.