The U.S. Federal Reserve on Wednesday raised its benchmark interest rate by 25 basis points to a range of 3.75% to 4%, with all 12 voting members supporting the decision, as policymakers moved to contain inflation while the economy remains resilient. The Fed’s latest projections put the median policy rate at 4.1% at the end of 2026, up from 3.8% in June, with 16 of 18 submitted projections pointing to at least one further increase from the current range this year.

Policymakers also raised their median U.S. growth forecasts to 2.3% this year and 2.4% in 2027, while lowering expected