Federal Reserve Raises Interest Rates Again Amid Elevated Inflation

The Federal Reserve raised interest rates by 25 basis points to 3.75%-4.00%, the first rate hike since July 2023, with a unanimous vote of 12-0.

The median policy rate is projected to be 4.1% at the end of 2026 and 2027, suggesting there may still be one more rate hike this year, although it's not a policy commitment.

Inflation remains elevated, with the median PCE inflation forecast for 2026 at 3.7% and core PCE at 3.4% on a year-on-year basis for the fourth quarter.

The market focus has shifted from 'whether to raise rates' to 'how long will tightening last', affecting tech stocks, crypto assets, and commodities.