Fed Raises Rates for First Time in Nearly Two Years

The Federal Reserve raised interest rates for the first time since July 2023, increasing the federal funds target range to 3.75%-4.00%. The decision was made by a unanimous vote of 12-0 and is expected to support a return to the central bank's 2% inflation goal.

The Fed's statement highlighted that economic activity remains strong but noted that inflation remains elevated, citing geopolitical developments as a source of uncertainty.

Chair Kevin Warsh emphasized the importance of price stability in the Fed's mandate, stating 'the plain fact is that inflation is too high and has been for too long'. He also declined to comment on US President Donald Trump's calls for lower rates, saying 'independence is a two-way street'.

New projections suggest the median federal funds rate will be 4.1% at the end of 2026, with one more quarter-point hike pencilled in this year. Bitcoin traded near $76,612 early Thursday, up about 1.1%, but crypto analysts note that the Fed's decision is not a direct impact on cryptocurrency markets.