The Federal Open Market Committee raised interest rates by 25 basis points today. This decision establishes a new target range for the federal funds rate.
Policymakers cited persistent inflation and soaring energy costs as primary drivers for the increase. The Summary of Economic Projections signals a hawkish outlook focused on a 2% inflation target.
Gold prices turned bearish as higher interest rates increased the opportunity cost of holding the metal. The US Dollar and Treasury yields strengthened immediately following the announcement.