Fed Raises Rates, Signals One More Hike in 2026 Amid Ongoing Inflation Concerns

The Federal Reserve (Fed) raised interest rates by a quarter percentage point at its September meeting. This move takes the target range of the federal funds rate to 3.75% to 4.00%. The unanimous vote was made by all 12 members of the FOMC, indicating their commitment to combating inflation.

Fed Chair Kevin Warsh emphasized that inflation remains too high and that the Fed is serious about delivering price stability. He stated, 'The plain fact is that inflation is too high, and has been for too long.'

The September Summary of Economic Projections' dot plot shows the median FOMC member expecting an additional 25 basis point rate hike in 2026. This indicates that officials expect rates to remain higher for longer.