Fed Unanimously Approves Rate Hike as 2026 Outlook Tightens

The decision pushes the federal funds rate to a target range of 3.75 to 4 percent. In its formal statement, the central bank emphasized that economic activity remains resilient, citing robust capital investment and steady job growth, even as geopolitical pressures continue to cloud the outlook. Officials stressed that this latest adjustment is a necessary step to guide inflation back toward their 2 percent target.

Notably, the vote saw a rare alignment among the committee, including Chair Kevin Warsh and appointee Stephen Miran, who had previously pushed for rate cuts. Market reaction was swift, with spot gold dipping to $4,310.10 per ounce. The latest Summary of Economic Projections underscores a hawkish pivot from the June meeting, where only six policymakers favored additional hikes for 2026 compared to the current majority of 16.