The Federal Reserve unanimously raised its benchmark interest rate by 25 basis points Wednesday to a target range of 3.75%-4.00%, its first rate increase since 2023, as policymakers continued efforts to return inflation to the Fed's 2% target.
- The Federal Open Market Committee approved the increase by a 12-0 vote.
- The Fed said economic activity is expanding at a solid pace, domestic spending remains resilient and inflation remains elevated.
- The median FOMC projection calls for one additional 25-basis-point increase in 2026, which would bring the target range to 4.00%-4.25%.
- Sixteen of 18 policymakers project at least one additional rate increase this year, while four project two additional increases.
- The Fed's longer-run median policy-rate projection increased to 3.2% from 3.1% in June.
- The Fed said Wednesday's increase would support a "timelier return" of inflation to its 2% goal.
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Editor’s Note: This is a developing story. This article may be updated as more details become available.
