Federal Reserve is expected to raise its benchmark rate, defying President Trump's demands
The unanimous quarter-point increase lifts the benchmark rate to 3.75% to 4%, and officials signaled one more hike may follow this year.
- On Wednesday, September 16, 2026, the Federal Reserve unanimously raised the federal funds rate by 25 basis points to a range of 3.75% to 4.00%, marking the first rate increase since July 2023.
- Persistent inflation and surging energy prices driven by the ongoing war in Iran prompted the policy shift, as officials aim to contain price pressures spreading through the broader economy.
- Federal Reserve Chair Kevin Warsh described the decision as "sober," stating "inflation is too high, and has been for too long" during a press conference following the announcement.
- Borrowing costs for mortgages and credit cards will rise, while National Economic Council director Kevin Hassett noted the White House respects the Fed's independence despite concerns about timing near midterm elections.
- Financial markets now anticipate additional rate increases in December and March, as policymakers prioritize inflation control over potential economic slowdowns to reach the central bank's 2% target.
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567 Articles
Montrose Daily Press
Fed raises interest rates for first time in 3 years, battling persistent inflation
The Federal Reserve raised interest rates Wednesday for the first time in three years as inflation continues to dog the economy, largely driven by soaring gas and fuel oil prices while the war in Iran drags on.
The decision of the US Federal Reserve Fed angers the American President. Italy and France take action against rising fuel prices. The DW news review.
Gold has risen by more than 1% today, while the dollar has maintained its highest level in seven weeks, following the US Federal Reserve's decision to raise interest rates and point to more monetary tightening, at a time when oil prices have declined as concerns about supplies receded. Gold in instant transactions rose by 1.1% to $4310.49 per ounce, after... this news was posted via Cedarnews news.
While the Federal Reserve's (Fed) interest rate decision continues to be a decisive factor in the direction of global markets, the selling pressure seen on the New York stock exchange yesterday following the bank's rate hike has given way to a more optimistic outlook today, particularly in futures markets.
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