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Fed Raises Rates to 3.75%–4.00% and Signals More Tightening
Vera
By Vera
Markets Editor
The Federal ReserveFederal Reserve refers to the Federal Reserveis the central bank of the United States. The term belongs in Level 7 because it helps connect macro conditions, policy, or another...Read More unanimously raised its target rate by 25 basis points to 3.75%–4.00%, saying InflationInflation refers to a sustained rise in the general price level that reduces the purchasing power of money. The term belongs in Level 7 because it helps connect macro conditions...Read More remains elevated and the move supports a timelier return to 2%. September projections put the median policy rate at 4.1% at both end-2026 and end-2027, implying another increase this year. The Fed also raised its 2026 growth and inflation forecasts while lowering projected unemployment. Reuters observed the dollar up 0.3%, two-year yields flat and U.S. equities modestly higher after the decision.
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