17/09/2026
The Federal Reserve raised its key interest rate by 25 basis points to a range of 3.75%–4.00%, marking its first monetary tightening since July 2023. The decision was made in a 12-0 unanimous vote by the Federal Open Market Committee.
Fed Chair Kevin Warsh cited strong economic growth, lingering summer price pressures, and surging oil prices driven by Middle East conflicts. Justifying the rate increase, he stated, "The plain fact is that inflation is too high and has been for too long."
The central bank's updated Summary of Economic Projections projected a median federal funds rate of 4.1% by year-end. This median Fed forecast shows one more 25 bps rate hike in 2026, with most members favoring further policy tightening to restore price stability.
Warsh maintained the Fed's political independence when asked about pressure from President Donald Trump to lower rates. Financial markets initially held steady following the announcement, but U.S. stocks ultimately closed lower while 10-year Treasury yields rose.
