Federal Reserve Hikes Rates Amid Inflation Concerns

The Federal Reserve raised the federal funds rate (FFR) by 25 basis points on Wednesday, lifting the target range to 3.75-4.00%. The unanimous vote was led by Fed Chair Kevin Warsh, who cited stronger growth, insufficient progress on inflation, and rising geopolitical risk as reasons for the move.

The Fed's updated projections show inflation not returning fully to target until 2029, while growth and employment forecasts improved. Global bond yields eased slightly following the decision.

This week will be dominated by Fedspeak, with nine officials set to speak in the coming days. Market attention also turns to President Trump's meeting with Chinese President Xi Jinping, where progress on trade and investment agreements is expected.