Federal Reserve hikes interest rates by 25 basis points as inflation remains elevated

FOX Business’ Edward Lawrence reports to Charles Payne on the Federal Reserve raising interest rates by 25 basis points. Projections show PCE inflation at 3.7% in 2026 and falling to 2.3% in 2027 as domestic spending remains resilient.

Interest rates rise by 25 basis points as the Federal Reserve battles elevated inflation. Edward Lawrence reports to Charles Payne on the central bank’s projections, which forecast PCE inflation at 3.7% in 2026 before falling to 2.3% in 2027. Despite elevated uncertainty from geopolitical events, domestic spending remains resilient and job gains continue to keep pace with the workforce.