The Fed just delivered a unanimous rate hike, the first in three years, and no cuts through 2027 | Fortune

The Federal Reserve delivered a unanimous 25-basis-point rate hike Wednesday, lifting the federal funds rate to a 3.75%–4% range—the first increase since 2023. The move came under the Fed’s new chair, Kevin Warsh, appointed by President Donald Trump, after Trump criticized the hike effort. Officials said the data left them little choice: inflation has stayed above 2% for five years, consumer sentiment is weak, the economy faces geopolitical strain including a war in Iran, and jobs reports remain strong. August CPI rose 0.4% month over month, quadrupling July’s pace. Futures had priced the hike with 93% odds. The Fed offered no forward guidance beyond noting inflation remains elevated and policy supports a “timelier” return to 2%. Median projections showed no cuts through 2027, with the median end-2026 and 2027 federal funds rate both at 4.1%.