The US Federal Reserve raises its policy interest rate by 25 basis points and signals that policymakers expect one more rate hike before the end of the year. The decision comes after the Fed’s latest policy meeting, when it releases updated projections for the path of rates and inflation.
In the Fed’s quarterly forecasts, officials also indicate that they expect rates to remain steady in 2027. Alongside the interest-rate outlook, the projections include an updated, higher near-term inflation assessment, while the broader growth outlook is maintained. Outlets differ mainly in how they emphasize the timing and implications of the “one more hike” guidance, but they all report the same core points: the current increase, the expectation of another move later this year, and stability thereafter.
The articles collectively frame the Fed’s message as conditional on its inflation and economic outlook, reflected in both the rate projections and the revisions to inflation expectations.
