NewsTradingSentimentCalendarCommunityBriefing
Sign in
Markets

Fed Unanimously Hikes Rates by 25 Basis Points to 4.00%

By Markets Desk · 2026-09-16 · 1 min read
A large, ornate marble building with tall columns and a pediment, typical of a central bank headquarters
Illustration: Tradingbird

The Federal Reserve raised its benchmark interest rate by 25 basis points to a range of 3.75% to 4.00%. The decision was unanimous among committee members.

The Federal Reserve increased its benchmark interest rate by 25 basis points. The new target range is 3.75% to 4.00%. Committee members voted unanimously for this action. This move marks the latest shift in monetary policy.

Officials expect one more rate hike later this year. They plan to hold rates steady in 2027. A single rate cut is projected for 2028. This path reflects a cautious approach to cooling inflation.

Inflation Forecasts Revised Higher

The Fed raised its headline inflation forecast for this year. The new estimate is 3.7%, up from 3.6%. Core inflation is now expected at 3.4%. This is an increase from the previous 3.3% estimate.

Officials do not see core inflation reaching 2% until 2029. They stated that this policy action supports a timelier return to their goal. The committee remains committed to delivering price stability. Uncertainty remains elevated due to geopolitical risks.

Economic Growth Outlook Improved

The Fed raised its GDP growth forecast for this year to 2.3%. The previous estimate was 2.2%. For next year, growth is now seen at 2.4%. This is up from the earlier 2.3% projection.

Consumer spending remains strong according to the committee. The unemployment rate outlook was lowered to 4.1%. This is down from the previous 4.3% estimate. The current unemployment rate stands at 4.3%.

Policy Statement Details

The statement notes that the action supports the 2% goal. It emphasizes the committee’s commitment to price stability. The Fed acknowledges elevated uncertainty from geopolitical factors. This information is reported by GN markets/policy (en-US).

Based on reporting by Yahoo Finance, compiled by the Tradingbird desk.

Read next

More in Markets
A large, ornate neoclassical building with tall columns and a pediment, bathed in soft morning light
Markets · Macroeconomy & Central Banks

Fed Hikes Rates to 4% as Inflation Remains Elevated

The Federal Reserve raised the benchmark rate by 25 basis points to a range of 3.75% to 4.0%. This marks the first increase since 2023 and follows five consecutive holds.

2026-09-16Illustration: Tradingbird
A large, ornate neoclassical building with tall columns and a pediment, viewed from a low angle against a clear sky.
Markets · Macroeconomy & Central Banks

Fed Hikes Key Rate to 3.9 Percent for First Time in Three Years

The Federal Reserve raised its benchmark interest rate by 25 basis points on Wednesday, marking the first increase since 2023. This move lifts the key rate to approximately 3.9 percent.

2026-09-16Illustration: Tradingbird
A large, ornate neoclassical building with tall columns and a dome, bathed in soft morning light
Markets · Macroeconomy & Central Banks

US Fed Hikes Rates to 4 Percent Amid Inflation Surge

The Federal Reserve has officially lifted its benchmark rate to 4 percent, marking the first increase in three years as it moves to combat a renewed surge in inflation.

2026-09-16Illustration: Tradingbird

More from the Markets desk

All desk stories
  • A wooden gavel resting on a dark mahogany desk
    Illustration: Tradingbird

    10-Year Yield Tops 5% as Fed Hikes Rates

    US 10-year Treasury yields closed above 5.00%, marking the highest level since July 2007. The Federal Reserve raised interest rates in a unanimous vote, signaling a sustained hawkish stance. The S&P 500 declined for the seventh time in eight sessions.

    2026-09-16
  • A wooden gavel resting on a dark mahogany desk
    Illustration: Tradingbird

    Fed Hikes Rates 25bp as S&P 500 Falls for Third Session

    The Federal Reserve raised rates by 25 basis points, marking its first increase in three years. The S&P 500 declined 0.45% to 7,552, extending a three-day losing streak as yields surged.

    2026-09-16
  • A large, classical stone building with tall columns and a dome, standing in a city square.
    Illustration: Tradingbird

    Fed Lifts Rates to 4.00% as Inflation Persists

    The Federal Reserve raised its benchmark rate by 25 basis points, setting the target range between 3.75% and 4.00%. This marks the first increase since summer 2023.

    2026-09-16