Overview
- The Federal Open Market Committee unanimously raised the federal funds target range by 25 basis points to 3.75%–4.00% in a decision announced on Wednesday.
- Chair Kevin Warsh said inflation is "too high and has been for too long" and that the hike is intended to speed a return to the Fed’s 2% price target.
- Policymakers released projections showing most members expect at least one more quarter-point increase before year end.
- Markets had heavily priced a September hike and reacted with higher Treasury yields and shifts in futures as investors re‑priced the outlook for further tightening.
- President Trump publicly criticized the move on social media and in remarks saying rates should be near 1%, a clash that highlights political pressure on the Fed ahead of the midterm elections.