FOMC Raises Rates 25 bps, Lifts Fed Funds Target Range to 3.75%–4%
AI Market Summary
The FOMC raised the federal funds target range by 25 bps to 3.75%–4% and reiterated its commitment to returning inflation to 2%. The statement characterizes growth as solid and inflation as still high, implying policy remains restrictive. Higher policy rates and tighter financial conditions typically support the USD and pressure risk assets via higher discount rates and funding costs in the near term.
Impact level
● High
Affected assets
NCSIDXY2USD/USDT+0.67%
AI Insight · NCSIDXY2USD/USDTAI Insight
▼ Bearish
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ME News, Sept. 17 (UTC+8) — The Federal Reserve released the full text of its latest Federal Open Market Committee (FOMC) policy statement.
The FOMC unanimously approved the statement in a 12-0 vote. The Committee decided to raise the target range for the federal funds rate by 25 basis points to 3.75%–4%, citing the Federal Reserve's dual mandate.
The Committee said it will continue to maintain ample reserves in the banking system. It noted that economic activity is expanding at a solid pace. While uncertainty remains elevated in part due to geopolitical developments, domestic spending has stayed resilient. Productivity growth was described as strong, with capital investment robust.
The statement added that employment growth has matched labor force growth and the unemployment rate has been little changed. Inflation remains high. The Committee said today's action is intended to support a more timely return to its 2% inflation target, reaffirming its commitment to price stability.
Source: ODAILY
