Fed raises rates to 3.75 to 4 percent; year-end median reaches 4.1 percent

The Federal Reserve raised the federal funds target range by a quarter point Wednesday, to 3.75 to 4 percent. The vote was 12 to 0.

The new projections put the median year-end federal funds rate at 4.1 percent, up from 3.8 percent in June. That is a projection, not a promised decision.

Policymakers raised their median 2026 growth estimate to 2.3 percent and lowered the unemployment estimate to 4.1 percent. Their median PCE inflation estimate rose to 3.7 percent, with core inflation at 3.4 percent.

The statement says inflation remains elevated. It describes economic activity as expanding at a solid pace.