Federal Reserve raises interest rates to 3.75%-4.00% range

The Federal Reserve has raised interest rates by 25 basis points, bringing the target range to 3.75% to 4.00%. The decision was unanimous, signaling a unified hawkish stance among policymakers. Officials emphasized that inflation remains a primary concern and indicated that this move is likely not a one-time adjustment. Economic projections suggest the federal funds rate could reach 4.1% by the end of the year, with markets pricing in further potential increases.

Despite the rate hike and a surge in the US dollar, gold prices demonstrated resilience. Spot gold rose to approximately $4,309 per ounce after recovering from recent lows. This rebound was supported by a pause in the global bond selloff and falling oil prices. While US gold futures saw some declines, traders noted that the rapid absorption of the interest rate shock suggests a strong foundation for precious metals.

In broader central bank news, the Bank of England is expected to maintain current rates, while the Bank of Japan is anticipated to raise interest rates following its upcoming monetary policy announcement.