The Federal Reserve unanimously raised its target range by 0.25 percentage points to 3.75%–4.00%, its first increase since 2023, saying activity is expanding solidly while inflation remains elevated. Officials’ median projection puts the rate at 4.1% at year-end, implying another rise, and 16 of 18 policymakers expect at least one further increase. That reinforces a higher-for-longer borrowing-cost outlook even as energy shocks cloud growth, and shows the Fed prioritising price stability despite White House pressure for cuts. The two-year Treasury yield rose about 6 basis points to 4.71%, the dollar reached a seven-week high and the S&P 500 closed 0.4% lower.