The US Federal Reserve's Federal Open Market Committee (FOMC), chaired by Kevin Warsh, raised the federal funds target range by a quarter percentage point to 3.75%–4%, according to a report on the decision. It is the first interest rate increase since 2023.

The committee said it raised the target range "in support of the Federal Reserve's dual mandate" and that it is continuing its policy of maintaining ample reserves in the banking system.

In its statement, the committee described economic activity as expanding at a solid pace. It said uncertainty remains elevated owing in part to geopolitical developments, while domestic spending has been resilient. The statement also said productivity growth is strong and capital investment is robust.

According to the statement, job gains have kept pace with the workforce and the unemployment rate has changed little. The available reporting did not include the full text of the statement or further details on the vote and the outlook for policy.