[The Federal Reserve raises interest rates by 25 basis points for the first time in 3 years, expects at least one more hike this year] At 2 a.m. today, the Federal Reserve announced its latest interest rate decision. The FOMC unanimously approved (12-0) raising the federal funds rate target range by 25 basis points (0.25 percentage points) to 3.75%–4.00%. This marks the first rate hike since July 2023. Previously, the Federal Reserve had kept rates unchanged for several consecutive meetings since 2026. Among the 18 officials who submitted forecasts, 16 expect at least one more rate hike (25 basis points) by the end of 2026, with 4 of them anticipating the possibility of two additional hikes. The median projection indicates one more hike this year, followed by stable rates in 2027, and then a gradual reduction thereafter. The next FOMC meeting is expected to take place at the end of October.