Fed Raises Rates 25 Basis Points, Signals Another Hike This Year
New projections show 16 of 18 policymakers expect at least one more quarter-point increase this year as inflation stays elevated.
- 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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784 Articles
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(CNS): Cayman’s high street banks are wasting no time in responding to the 0.25% interest rate increase in the United States on Wednesday. The banks have begun circulating notices that interest rates here on loans will increase from 6.75% to 7% on Friday. The US Federal Open Market Committee (FOMC) voted unanimously to raise its benchmark […]
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I had intended to write on the Fed’s decision to raise rates, but I don’t have much to add to what I wrote last week. I do think inflation is high, and for the moment the labor market seems reasonably healthy. But I don’t see higher rates as being a useful way to combat inflation caused by tariffs and Trump’s war on Iran.As I noted, there is no case for the sort of wage-price spiral we saw in the 1970s. Wage growth has actually slowed sharply ov…
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(CNN)- The Federal Reserve raised interest rates Wednesday for the first time in more than three years as policymakers work to bring persistent inflation under control. The Federal Open Market Committee voted unanimously to increase its benchmark rate by a quarter percentage point to a target range of 3.75% to 4%. Federal Reserve Chairman Kevin Warsh, who was nominated by...
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In today’s newsletter, we look at conflicting signals on the economy after the Federal Reserve raised interest rates by a quarter point. President Trump sharply criticized the Fed’s decision. Overseas, Vice President J.D. Vance defended continued U.S. involvement in the Iran conflict. We also have remarkable newly released footage of the massive U.S. military operation that rescued an injured American airman stranded inside Iran. Finally, we hav…
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This week — Independent institutions: 2, Trump: 0The US president took two big domestic losses this week. First, the Supreme Court ruled against his demand for restrictions on mail-in voting in the upcoming midterms. The stinger? All three Trump-appointed justices sided with the decision. “These are not the people I interviewed,” he griped on social media. Two days later, his hand-picked Fed Chairman Kevin Warsh oversaw the first US interest rat…
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