The Federal Reserve raised interest rates by 25 basis points, lifting the benchmark rate to 3.75%–4%, in line with market expectations.
What’s truly worth paying attention to isn’t just those 25 basis points.
The latest dot plot shows: of 18 officials, 12 expect one more rate hike in 2026; 4 expect two more hikes; and only 2 expect no further hikes.
That means: among the 18 officials, 16 believe there is room for additional rate hikes in 2026.
This rate hike was fully priced in by the market; what the market fears most is an “unexpected hike,” which means the biggest near-term shock has already been priced in.
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What’s truly worth paying attention to isn’t just those 25 basis points.
The latest dot plot shows: of 18 officials, 12 expect one more rate hike in 2026; 4 expect two more hikes; and only 2 expect no further hikes.
That means: among the 18 officials, 16 believe there is room for additional rate hikes in 2026.
This rate hike was fully priced in by the market; what the market fears most is an “unexpected hike,” which means the biggest near-term shock has already been priced in.
$QQQ $BTC $ETH