Fed Raises Rates Amid Inflation Concerns, Pencils in Additional Hike

The Federal Reserve has raised interest rates by a quarter percentage point as part of its efforts to contain inflation. The move, announced on September 16, 2026, was accompanied by an additional hike penciled in for later this year. This decision is aimed at supporting the committee's goal of returning to a 2% inflation rate.

The increase will test Chairman Kevin Warsh's relationship with President Donald Trump, who has been critical of Fed actions in the past. The statement following the move emphasized that today's policy action will support a timelier return to the committee's 2% goal.