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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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The U.S. Federal Reserve (Fed) unexpectedly raised its policy rate (base rate) for the first time in three years and two months. Domestic and international financial markets are paying attention to the fact that the Fed raised the base rate unanimously and signaled further increases within the year, evaluating this decision not as a one-off event but as the beginning of a shift toward monetary tightening. The U.S. Fed 1

Center

The US Federal Reserve's decision had strong economic grounds, but the era of cheap money is over for a long time, writes financial journalist Ville Kolari.

·Helsinki, Finland
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Lean Right

With inflation still above its 2% target, the U.S. Federal Reserve has raised its interest rates by a quarter of a percentage point and is also considering a further increase by the end of the year to contain the price increase.

·Gennevilliers, France
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Reuters broke the news in London, United Kingdom on Wednesday, September 16, 2026.
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