Fed hikes rates 25 bps, expects one more increase this year

1 min

The Federal Reserve raised the federal funds rate by 25 basis points in its first hike since July 2023. The decision was unanimous at 12-0 and aims to deliver a timelier return to 2% inflation. Guidance and projections indicate a higher-for-longer policy path.

Decision

- Rate increase: 25 basis points
- Vote: 12-0 unanimous

Inflation and Policy Guidance

- Objective: Timelier return to 2% inflation
- Median forecast: One additional 25 basis point hike in 2026
- Policy stance: The Committee will deliver price stability
- Interpretation: Higher-for-longer rates signaled