Sep 14 - Sep 18Written by: Claude
What Happened Last Week · What Is Coming This Week
Fed Hikes 25 Basis Points, Dot Plot Erases 2027 Cuts
Last Week
The Fed's dot plot set the tone. The hike itself was priced in; the 2027 path was not.
The Fed raised rates by 25 basis points on Wednesday, lifting the target range to 3.75%-4.00%. The 12-0 vote was unanimous, the first increase since July 2023.
The 2026 median rose to 4.1% from 3.8%, and the 2027 median to 4.1% from 3.6%. Every cut penciled in for next year is gone.
Stocks barely moved on the decision. The selling came during Kevin Warsh's press conference, and the Dow closed Wednesday down 631 points.
