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Federal Reserve raises target range for fed funds rate to 3.75% to 4%

The Federal Open Market Committee voted 12 to 0 to lift the target range by 0.25 percentage point while maintaining ample reserves and targeting a faster return to its 2% inflation goal.

Reported · Written up by our desk · Central Banks

The Federal Open Market Committee approved a policy statement that raises the target range for the federal funds rate by 0.25 percentage point to 3.75% to 4.0%, according to the Federal Reserve.

The Fed said the decision was made in support of its dual mandate, while continuing its approach of maintaining ample reserves in the banking system.

In its assessment, the central bank described economic activity as expanding at a solid pace, with resilient domestic spending, strong productivity growth, robust capital investment, and job gains that have kept pace with the workforce.

The Fed also noted that inflation remains elevated and said the policy action is intended to support a timelier return to its 2% goal, with price stability as the target outcome.

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