Fed Meeting Today: Warsh, FOMC Raised Interest Rates by 0.25 Percentage Point — Live Updates - WSJ

**Federal Reserve Raises Target Rate by 0.25 % to 3.75‑4.00 %**

The Federal Open Market Committee (FOMC) concluded its June meeting with a unanimous vote to increase the federal funds target range by a quarter‑percentage point, bringing it to 3.75 %‑4.00 %. The decision, announced in a statement released shortly after the meeting, marks the first rate hike since the end of 2023. While the committee credited recent progress in curbing inflation, it warned that price pressures remain “elevated enough to warrant further policy tightening,” and signaled the likelihood of at least one more increase before the end of the calendar year.

Inflation data released earlier this week showed the consumer price index (CPI) rising 0.3 % month‑over‑month, keeping the 12‑month rate at 3.7 %, just above the Fed’s 2 % target. The central bank cited “persistent core price pressures in services and housing” as the primary driver behind the move. Economic growth, meanwhile, has shown mixed signals: payrolls remain solid, but manufacturing activity and consumer confidence have softened, prompting the Fed to adopt a “data‑dependent” stance. The statement echoed remarks from Chair Jerome Powell that monetary policy will stay “restrictive enough” to bring inflation back to target while avoiding a sharp slowdown in the labor market.

Financial markets reacted swiftly. The benchmark 10‑year Treasury yield jumped 4 basis points to 4.22 %, while the dollar index edged higher against a basket of major currencies. Equities experienced a brief pullback, with the S&P 500 shedding 0.6 % in early trading. Analysts across Bloomberg, Reuters and the Wall Street Journal noted that the hike reaffirms the Fed’s commitment to price stability but also raises the risk of a tighter credit environment for borrowers. With the next policy meeting slated for September, investors will be watching upcoming jobs and inflation reports for clues on the timing and magnitude of any additional moves.