Fed Raises Rates 25 Basis Points for First Time Since 2023

The Federal Reserve raised its benchmark interest rate by 25 basis points to a 3.75-4.00% range on Wednesday, marking the first increase since July 2023. All 12 FOMC members voted for the hike, which matched market expectations of a 92.4% probability.

Before the announcement, spot gold climbed to $4,344 an ounce before settling near $4,322. After the decision, bullion fell sharply to $4,273, a drop of about $80, while the dollar strengthened against the euro. Silver tracked a similar pattern, peaking at $64.84 before retreating to $64.55.

“The policy measures adopted today will help inflation return to our 2% target more quickly.”

In Turkey, the Malatya jewelry market saw morning records — 24-karat gold at 6,880 TL per gram and 22-karat jewelry at 6,540 TL — reverse to 6,810 TL and 6,470 TL respectively by evening as the global sell-off hit local vitrines.

The FOMC statement noted economic activity expanding at a strong pace, elevated geopolitical uncertainty, resilient consumer spending, and inflation remaining above the 2% target. U.S. stock indexes closed the Wednesday session 0.1-0.7% higher.