Fed Raises Rates for First Time Since July 2023 Amid Persistent Inflation

The Federal Reserve raised interest rates for the first time since July 2023, increasing them by 25 basis points to between 3.75% and 4%. This decision came after a meeting of the Federal Open Market Committee (FOMC) on September 16, 2026.

Fed Chair Kevin Warsh emphasized that the rate hike was driven by the economy's resilience and persistent inflationary pressure. He noted that the US economy has strengthened since the last meeting in July, and summer inflation dynamics did not confirm a sustained move toward the target level of 2%.

The Fed also released an updated forecast, which included higher estimates for US real GDP growth and PCE inflation. The median rate forecast is now 4.1% for the end of 2026 and 2027.