Fed Raises Rates 25 Basis Points, Signals Another Hike This Year
Officials said 16 of 18 policymakers expect at least one more quarter-point increase this year as inflation stays elevated.
- On Wednesday, the Federal Reserve unanimously voted to raise interest rates to between 3.75 and 4.00 per cent, marking the first increase in three years.
- Persistent inflation driven by rising oil prices during the U.S.-Israeli conflict with Iran prompted the action, as officials aimed to support a "timelier return" to their 2 per cent target.
- Fed Chairman Kevin Warsh emphasized that "the plain fact is that inflation is too high and has been for too long," while the Dow Jones Industrial Average tumbled more than 850 points after the announcement.
- Following the announcement, the two-year Treasury yield jumped to 4.73% from 4.67% late Tuesday, while JPMorgan Chase fell 2%, one of the market's heaviest weights.
- Projections published Wednesday show at least 12 of 18 policymakers expect another rate hike before year-end, with the median forecast suggesting the federal funds rate will reach 4.1%.
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Although Wall Street received the Fed's interest rate hike on Wednesday with a drop, the mood in the markets is improving on Thursday morning. After the largely priced-in decision, it may bring some relief that the rise in long-term US bond yields has stopped, while the price of oil has also decreased. Movements in Asia are mixed, while futures indices indicate a positive opening in Europe and a rebound in America. The Bank of England's interest…
Due to persistently high inflation, the Fed raised its benchmark interest rate to 3.75-4 percent, and most decision-makers believe another increase could come by the end of the year.
US Fed hikes rates for first time since 2023 as inflation stays sticky
The US Federal Reserve on Wednesday raised its interest rate by 25 basis points to 3.75-4%, its first hike since July 2023, to combat persistent inflation. The Federal Open Market Committee (FOMC) voted unanimously, 12-0, at a meeting held
Fed Raises Rates in First Major Step by Warsh to Contain Inflation (copy)
The Federal Reserve raised interest rates by a quarter of a percentage point on Wednesday, the first increase in more than three years and a significant step by Kevin Warsh, the central bank’s chair, to combat elevated inflation.
Fed Raises Rates, but What Does That Really Mean for Homebuyers?
When the Federal Reserve changes interest rates, homebuyers and homeowners often assume mortgage rates will immediately move in the same direction. The relationship, however, is more complicated. On September 16, 2026, the Federal Reserve raised its target range for the federal funds rate by one-quarter percentage point to 3.75%–4.00%. The change becomes effective September 17....
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