Fed Hikes Interest Rates for First Time Since July 2023

The Federal Reserve has raised its target range for the federal funds rate by 0.25 percentage points to 3.75%, 4.00%, with a unanimous vote from the Federal Open Market Committee (FOMC) on September 15-16, 2026.

This marks the Fed's first rate hike since July 2023 and its first decision under new President Kevin Warsh, who assumed leadership of the institution.

The decision was widely anticipated by markets, which had been assigning a high probability to this hike following Warsh's speech at Jackson Hole on August 26 and the reported inflation uptick in August.