Financial Market Research Brief

Unified committee voted to raise the federal funds rate. After a stronger job-creation reading and persistent inflation above the 2 percent target, the Federal Open Market Committee voted unanimously to raise the target range for the overnight lending rate by 25 basis points to a lower bound of 3.75 percent. The FOMC maintains that the current rate aligns with its dual mandate of low inflation and high employment but remains open to data-driven adjustments. Before the meeting, markets priced a roughly 90 percent chance of a 25-basis-point hike in September; Wall Street now expects a 53 percent chance of another hike in October.