Fed Raises Rates 25 Basis Points, Signals Another Hike This Year
- On Wednesday, September 16, 2026, the Federal Reserve's Federal Open Market Committee unanimously voted to raise the federal funds target range 25 basis points to 3.75%–4.00%, marking the first rate increase since 2023.
- Policymakers cited persistent inflation driven by energy shocks from the Iran war, global tariffs, and AI capital spending, identifying broad-based price pressures that prompted the Fed's action.
- Updated projections showed 16 of 18 policymakers expect at least one additional quarter-point hike later this year, while officials do not anticipate inflation returning to the 2% target until 2029.
- Treasury yields surged, pushing the average 30-year fixed mortgage rate to 7.19%, complicating the economic landscape for households and businesses seeking credit.
- The unanimous decision puts Chairman Kevin Warsh on a "collision course" with President Donald Trump, who demanded lower rates; Warsh emphasized the Fed's mandate to address inflation regardless of political pressure.
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US Federal Reserve Fed has raised its key interest rate for the first time since summer 2023 due to persistently high inflation, rising by 0.25 percentage points to 3.75 to 4.00 percent, as reported by the Fed Central Bank Council. Central Bank head Warsh is thus on a confrontation course with US President Trump.
For the first time since 2023, the US central bank raised its policy rate by 0.25 points, citing persistent inflation despite Donald Trump's repeated calls to loosen credit.
The Federal Reserve of the United States (Fed), the US central bank, decided unanimously to increase interest, against Donald Trump's expressed willingness to have lower interest. Most members anticipate yet another increase by the end of the year and project annual inflation this year at 3.7%
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.
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