Fed policymakers rally around the ‘price stability flag’ in rate hike
Here's what three economists had to say about the U.S. Federal Reserve's decision and the outlook for future interest rate hikes
The US Federal Reserve has raised its policy interest rate to a target range of 3.75% to 4%, its first hike in three years, as inflation remains above the central bank's 2% target. This move was widely expected by markets, but opposed by President Donald Trump. According to the Financial Post, the rate hike comes as inflation has been "stubbornly above" the Fed's target.
Federal Reserve officials expect one more interest rate increase this year and plan to hold rates steady in 2027, according to quarterly projections released after their latest policy meeting, as reported by Investing.com. The projections also show rates coming back down in 2028 and a federal funds rate of 3.50-3.75% in 2029. The Fed's forecasts indicate generally higher inflation for this year and beyond.
The White House has described the Federal Reserve's interest rate hike as "regrettable", adding that raising rates does not impact oil prices, Ajel English reports.
Brief written by urgent.news from Financial Post, Investing.com, Ajel English — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.
