Fed lifts rates 25 bps to 3.75%–4.00%; dot plot shows 16 of 18 officials expect at least one more hike in 2026

The Federal Reserve's Federal Open Market Committee voted unanimously (12–0) to raise the target range for the federal funds rate by 25 basis points to 3.75%–4.00%, and reiterated it will continue operating with ample reserves in the banking system. In its statement, the FOMC said the U.S. economy is still expanding at a solid pace. It pointed to resilient domestic spending, strong productivity growth and capital investment, and a labor market that remains broadly stable. The Committee added that uncertainty remains elevated, partly reflecting geopolitical developments. Inflation is still high, the Fed said, and the latest increase is aimed at supporting a more timely return to its 2% inflation objective. Wall Street Journal reporter Nick Timiraos noted that 16 of 18 participants projected at least one additional rate increase in 2026, and only a small number expected rates to end 2027 below 4%.