US Fed Hikes Interest Rate After 3-Year Drought

The US Federal Reserve has made its first interest rate hike since 2023. This move sees the target range for the Federal funds rate raised by a quarter of a percentage point to 3.75 to 4.0% from 3.50 to 3.75%. The decision marks a shift in monetary policy, as the Fed aims to balance economic growth with inflation control.

The hike was announced on Thursday, September 17, 2026, and is expected to have implications for the global economy. The new target range of 3.75 to 4.0% reflects the Fed's efforts to manage inflation and stabilize financial markets.