Fed raises federal funds rate to 3.75%–4.00% and signals possible further hikes in 2026

The Federal Reserve’s Federal Open Market Committee (FOMC) voted unanimously (12–0) to raise the target range for the federal funds rate by 25 basis points to 3.75%–4.00% and said it would continue maintaining ample reserves in the banking system ^[1].

Multiple outlets reported this as the first Fed rate hike since 2023, with reporting noting the decision was aimed at supporting a return of inflation to the Fed’s 2% goal ^{[2] [3]}.

Wu Blockchain reported that 16 of 18 Fed officials project at least one more rate hike in 2026 ^[1].

Crypto-media outlets also reported that Fed officials released a “dot plot” alongside the rate decision showing expectations of continued tightening, with one report stating that 12 of the 18 officials projected the process was not yet complete ^[4].

CryptoPotato reported that Bitcoin was reacting to the Fed decision as traders priced in the rate hike, and said the FOMC decision was unanimous (12–0) to raise the target range to 3.75%–4.00% ^[5].

Bitcoin.com News reported that Bitcoin was holding around $75,500 as traders priced in the Fed rate hike ^[6].