Fed raises policy rate 25 basis points to 3.75-4.00 percent

The Federal Open Market Committee raised its policy rate by 25 basis points to a 3.75-4.00 percent range, with a unanimous 12-0 vote, according to a statement released after the September decision. The Fed said economic activity continues to expand at a solid pace but that uncertainty remains high, partly due to geopolitical developments, a broader phrasing than the prior statement's reference to the Middle East conflict. It said employment growth was in line with labor market growth and the unemployment rate changed little, while inflation remained at high levels. The statement removed language attributing price increases to supply shocks in some sectors and said the action would support inflation returning to the 2 percent target more timely.