Economy / Markets
Federal Reserve lifts rates 25 basis points in Warsh's first hike, signals at least one more by year-end
The Federal Reserve raised its benchmark interest rate by 25 basis points on Wednesday, the first move since July 2023 and chair Kevin Warsh's first hike, taking the federal funds rate target range to 3.75 percent to 4.00 percent by a unanimous 12-0 FOMC vote. The committee signalled that borrowing costs could rise further, with 16 of 18 policymakers projecting at least one more 25-basis-point increase before the end of 2026 and a median endpoint of 4 to 4.25 percent. Inflation remains elevated, the statement said, with the central bank noting that higher energy prices were adding to price.