US Fed Hikes Rates as Expected, Sees More Tightening Ahead

The US Federal Reserve has raised its key policy rate by 25 basis points to 4.0%, as expected, in a unanimous vote.

This is the first rise since 2023, and the Fed noted that 'inflation remains elevated' and they will 'deliver price stability.'

However, their forward-looking interest rate projections were raised only to new 4% levels, with a strong majority of members believing another rate hike is possible this year.

The US dollar rose after the decision, while Wall Street initially held its pre-decision gains before retreating sharply lower and the UST 10-year yield jumped back over 5%.