Fed Delivers First Rate Hike Since 2023, Lifts Benchmark to 3.75%-4%

The Federal Reserve raised its benchmark interest rate by 25 basis points on Wednesday, marking its first hike in more than three years and pushing the federal funds rate to a target range of 3.75% to 4.00%.

Unanimous Vote Signals Inflation Concerns

The decision came as no surprise to markets, which had priced in the move well ahead of the announcement. All Federal Open Market Committee members voted in favor, and most officials expect at least one more hike before the year ends. In its policy statement, the FOMC said economic activity continues expanding at a solid pace and that domestic spending has stayed resilient despite elevated uncertainty tied partly to geopolitical developments.

The committee acknowledged inflation remains elevated, adding that Wednesday’s action would support a timelier return to its 2% target and reaffirming its commitment to price stability.

Bitcoin Barely Moves on the News

Bitcoin showed little reaction in the immediate aftermath of the rate decision, trading near $76,500 with minimal change from pre-announcement levels. The muted response suggests markets had already absorbed the widely anticipated hike into current pricing, leaving traders now watching for signals on the Fed’s next move and how sustained rate pressure might shape crypto markets heading into year-end.