Fed Unanimously Raises Rates by a Quarter Point

• Fed unanimously raised benchmark rate by 25 basis points to 3.75%-4% range.
• 16 committee members anticipate another rate increase this year, with 8 seeing another hike next year.
• Long-run neutral rate raised to 3.2% from 3.1%.
• Faster GDP growth forecast for this year (2.3%) and next (2.4%).
• Unemployment forecast to remain at 4.1% through 2029.
• PCE headline inflation forecast at 3.7% this year, 2.3% next year; 2% target pushed to 2029.

The Federal Reserve unanimously raised interest rates by a quarter percentage point, bringing the benchmark rate to a 3.75%-4% range. The committee forecasts faster economic growth and stable unemployment, but anticipates another rate hike this year and pushes the 2% inflation target out to 2029, indicating a sustained effort to achieve price stability.