US Central Bank Fed Raises Interest Rates by 25 Basis Points
The move, which was in line with money market expectations, aims to bring inflation closer to the target.
At its recent meeting, the US Federal Reserve raised the federal funds rate by 25 basis points to a range of 3.75 to 4.00 percent. Taken with the unanimous decision of all members, this step went on record as the first interest rate hike move since July 2023.
Details of the Interest Rate Hike
At the meeting held on September 16, 2026, the US Federal Reserve raised the federal funds rate by 25 basis points to the 3.75%-4.00% range.
Unanimity and Shift in Views
The decision in question was taken with the unanimous vote of 12 members. While three members voted in favor of an interest rate hike at the July meeting with the majority preferring to wait, this minority view transformed into a joint stance within two months.
Market Expectations and Inflation
Following the rise in oil prices and strong core consumer inflation data, money markets were pricing in a 90 percent probability of a rate hike at the September meeting.
Taken with the aim of returning inflation to the 2% target in a shorter time, this decision marks the first interest rate hike since July 2023.
Upcoming Meeting Schedule
Following the interest rate decision, the subsequent meeting dates of the US Federal Reserve for 2026 were announced as October 27-28, 2026 and December 8-9, 2026.