The Federal Reserve FOMC unanimously decided to raise interest rates by 25 basis points, increasing the target range for the federal funds rate to 3.75%–4%, marking the first rate hike since July 2023. The latest dot plot shows that 16 officials expect at least one more rate hike in 2026, with the median rate projections for both 2027 and 2026 standing at 4.1%. Fed Chair Powell stated that recent data indicate a strong U.S. economic performance and resilient labor market, but inflation remains too high and has persisted for too long, and the FOMC is currently not confident that inflation is moving toward the 2% target. He said the primary issue with the current economy is not growth, but inflation. Powell also noted that rising U.S. Treasury yields are mainly driven by a strong U.S. economy, intensified capital competition, and geopolitical factors. From the announcement of the decision to Powell's press conference, spot gold fell approximately $100, the dollar index rose about 40 points and broke through the 100 level, the 2-year U.S. Treasury yield increased by around 10 basis points, and the 10-year yield rose by about 5 basis points, with all major U.S. stock indices turning negative. Interest rate futures currently price in an additional approximately 33 basis points of hikes this year and expect a cumulative increase of about 75 basis points by June next year. [ChainCatcher]