Fed dot plot lifts rate view to 3.8%, hinting at a possible 2026 hike

The Federal Reserve's June dot plot raised the 2026 rate projection to 3.8% and inflation to 3.6%, signaling a possible interest-rate hike. This development caused US Treasury yields to leap as traders fully priced in higher borrowing costs for 2026. Following the announcement, Bitcoin and stocks slipped. The updated projections from Federal Reserve officials indicate that higher rates are expected in the coming months, impacting various financial markets and influencing investor expectations for future growth.