Fed raises rates by 25 basis points in first hike since July 2023

The U.S. Federal Reserve tightened monetary policy for the first time in more than three years on Wednesday.

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In a nearly-universally anticipated move, the central bank lifted its benchmark fed funds rate range by 25 basis points to 3.75%-4%.

The vote to hike rates was unanimous, and most see one more rate hike coming this year.

“Economic activity is expanding at a solid pace,” said the FOMC in its policy statement. “While uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient … Inflation remains elevated. Today’s policy action will support a timelier return to the Committee’s 2 percent goal. The Committee will deliver price stability.”

BItcoin is volatile in the moments following the decision, but currently not much changed at $75,700. U.S stocks continue modestly higher and bond yields slightly lower.