The Federal Reserve announced a 25 basis point interest rate hike, and 16 officials expect another rate hike in 2026

The Federal Reserve announced a 25 basis point rate hike on the 17th, marking the first rate hike of 2026. The latest dot plot from the Federal Reserve shows that 18 out of 19 officials have submitted forecasts, with 16 believing that interest rates should be raised again this year. Specifically, 4 officials believe that a cumulative interest rate hike of 75 basis points should be implemented in 2026, 12 officials believe that a cumulative interest rate hike of 50 basis points should be implemented, 2 officials believe that a cumulative interest rate hike of 25 basis points should be implemented, 0 official believes that the interest rate should remain unchanged at 3.5% -3.75% this year, and 0 official believes that a cumulative interest rate cut of 25 basis points should be implemented. (Source: Jin Shi) AI interpretation: The Federal Reserve's interest rate hike directly shattered the market's illusion of a shift towards loose monetary policy. The dot plot shows that the vast majority of officials support further tightening, clearly expressing a tough stance against inflation. This policy path will continue to push up financing costs and directly suppress capital market valuations. The continuation of the high interest rate environment is a foregone conclusion, and the flow of funds will further concentrate on safe haven assets.