The Federal Reserve raised the federal funds rate by 25 basis points at the conclusion of its September policy meeting, bringing the target range to 3.75% to 4%. The decision comes amid renewed inflation concerns and an increase in long-term interest rates. Notably, the decision was unanimous 12-0 vote, reflecting a unified view to tackle renewed inflationary pressures. With respect to economic conditions, the Federal Open Market Committee (FOMC) stated that “economic activity is expanding at a solid pace.” In fact, the Fed slightly upgraded its growth projections. …Additionally, the FOMC noted that “uncertainty remains elevated” due to “geopolitical developments,” which is a nod to current trade issues and the Iran war. On inflation, the FOMC stated simply that “inflation remains elevated.” The Fed noted that today’s hike, which is in response to inflation rising to a 3.4% year-over-year rate, “will support a timelier return to the Committee’s two percent goal.”  

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