The Federal Open Market Committee today announced it would raise the target range for the federal funds rate by 25 basis points to 3.75% to 4%. The vote was unanimous.
Today’s decision marks the first time the FOMC has raised the rate since 2023.
“Economic activity is expanding at a solid pace,” the FOMC said in a statement announcing its decision. “While uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient. Productivity growth is strong, and capital investment is robust. Job gains have kept pace with the workforce, and the unemployment rate has changed little.
