Fed Hikes Interest Rates for First Time Since 2023, Eyes Inflation

The Federal Reserve has raised interest rates for the first time since 2023. The federal funds target range is now at 3.75%-4.00%, up from a previous level of 3.50%. This decision was unanimous, with Fed Chair Kevin Warsh set to hold a press conference today.

The policy statement emphasized that inflation remains elevated and that the rate increase will support a return to the Committee's 2% goal. The updated dot plot shows officials projecting a year-end 2026 fed funds rate of 4.1%, indicating one additional hike by December.