Fed unanimously hikes rates, 12-0, and vows to deliver price stability

The Federal Reserve raised interest rates with a 12-0 unanimous vote, the first unanimous decision since May 2025. The policy statement emphasized: the Committee will deliver price stability, signaling a priority on curbing inflation despite political pressure.

Key decisions

• Rate hike approved unanimously by all 12 voting members.
• Statement priority: achieving price stability and containing inflation.
• First unanimous decision since May 2025.

Political context

• President Trump urged rate cuts ahead of the meeting.
• He stated he would halt trading with more than 50 U.S. partners if the Fed did not cut.
• The Fed hiked rather than cut, widening the policy divide between the White House and the central bank, even after Jerome Powell’s departure.

Market and policy implications

• Higher rates: tighter financial conditions and pressure on risk assets including crypto.
• Unanimous vote and hawkish language: reduced odds of near-term easing.
• Escalating executive-branch threats on trade: elevated macro uncertainty and potential volatility across global markets.