Fed Raises Interest Rates 25 Basis Points Amid Inflation Concerns

The Federal Reserve raised interest rates by 25 basis points to 3.75%-4.00% in its first hike since July 2023, citing persistent inflation pressures.

Bitcoin traded above $76,000 on the news, as markets had largely anticipated a rate increase.

The FOMC said economic activity has continued to expand at a solid pace, while inflation remains elevated.

Twelve of 18 Fed officials projected at least one additional hike in 2026, with the median projection putting the federal funds rate at 4.1% by year-end.