WASHINGTON — The Federal Reserve raised interest rates by a quarter of a percentage point on September 16, 2026, marking the first increase since July 2023.
The Federal Open Market Committee voted 12-0 to lift the target range for the federal funds rate to 3.75% to 4%. The move is aimed at bringing inflation closer to the central bank’s 2% goal.
Why the Fed Acted
In its statement, the Committee said economic activity is expanding at a solid pace, job gains have kept up with the workforce, and inflation remains elevated. The rate increase is intended to support a more timely return to price stability.
The decision comes under the leadership of Fed Chair Kevin Warsh. Officials signaled that further increases remain possible later in the year.
What It Means
Higher rates typically raise borrowing costs for mortgages, auto loans, and credit cards while aiming to cool inflation. Markets had largely anticipated the quarter-point move.
Based on the Federal Reserve’s FOMC statement released September 16, 2026.
The Federal Reserve raised interest rates by 25 basis points.
— Web3 Native (@Web3_Native1) September 17, 2026
