Fed Rate Hike Set at 4%: What it Means for Crypto Markets

The US Federal Reserve has increased its target interest rate to 3.75%-4.00% in its first rate hike since 2023.

This 25 basis point increase was approved unanimously by the Federal Open Market Committee.

Fed Chair Kevin Warsh highlighted the strengthening economy, citing resilient consumer spending and business investment, as well as a labour market near full employment.

Warsh acknowledged that inflation remains above the 2% target but expressed confidence in the Fed's ability to contain it.

The Fed projects inflation will average 3.7% in 2026, then drop to 2.3% in 2027, before returning to its target rate of 2% in 2029.