The Federal Reserve is Expected to Raise Interest Rates for the First Time Since 2023

FED RATE DECISION: FIRST HIKE SINCE 2023 COULD RESET THE OUTLOOK FOR INFLATION, DEBT AND THE DOLLAR The Federal Reserve is expected to raise interest rates for the first time since 2023 as persistent inflation, oil prices above $100 and elevated Treasury yields create a new challenge for U.S. monetary policy, government debt and the dollar. OVERVIEW • Markets are heavily expecting a quarter-point Federal Reserve rate increase today, which would lift the federal funds target range to approximately 3.75%–4.00% and mark the first Fed increase since July 2023. • The bigger story may be what comes next. Investors are…