Federal Reserve Unanimously Raises Interest Rates by 0.25%
The Federal Reserve unanimously increased the benchmark federal funds rate by a quarter percentage point, bringing it to a range of 3.75% to 4%. The decision reflects efforts to control inflation and includes plans for an additional hike later this year as outlined in policymakers' projections. According to the Fed's latest economic outlook, growth is expected to remain solid at 2.3% in 2026 and rise slightly to 2.4% in 2027. Unemployment is projected to stay steady at 4.1%, while inflation remains elevated with a median forecast of 3.7% for the year, down only marginally from June's projection. The Fed also raised its long-run neutral rate estimate to 3.2%. The central bank emphasized that these actions are intended to support achieving its 2% inflation target by 2029 and ensure price stability in the economy.
Topics: economic growth Federal Reserve inflation interest rates