The Federal Reserve raised its benchmark rate by 25 basis points on September 16, bringing the target range to 3.75%-4.0%, the first rate hike since July 2023. The unanimous 12-0 FOMC vote reflected concerns about persistent inflation above the 2% target. Equity markets fell on the news: the Dow Jones dropped 631 points (1.2%) and the S&P 500 fell 0.45%, while Treasury yields climbed 6-7 basis points. Sixteen of eighteen FOMC participants signaled they expect at least one more quarter-point hike before year-end, indicating continued monetary tightening ahead.
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