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Fed Raises Rates by a Quarter Point to New Target Range
The Federal Open Market Committee voted unanimously to lift the federal funds rate, citing solid economic expansion and resilient domestic spending.
By PREVICT ResearchUpdated
Key points
- The Federal Open Market Committee approved a quarter-point rate hike in a unanimous 12-0 vote.
- The Fed said economic activity is expanding at a solid pace and domestic spending has been resilient, even as uncertainty remains elevated.
- The committee is continuing its policy of maintaining ample reserves in the banking system.
The Federal Reserve raised its benchmark interest rate by 25 basis points on September 16, 2026, according to the FOMC statement. The committee voted 12-0 to increase the target range for the federal funds rate.
The Federal Open Market Committee raised the target range for the federal funds rate by a quarter percentage point, citing its dual mandate. The decision was approved by a 12-0 vote, according to the official statement released September 16, 2026, at 2:00 p.m. EDT.
The committee described economic activity as expanding at a solid pace. It noted that while uncertainty remains elevated, partly due to geopolitical developments, domestic spending has been resilient.
Alongside the rate increase, the Fed said it is continuing its policy of maintaining ample reserves in the banking system.
Sources
- 1Federal Reserve issues FOMC statementFederal Reserve ·
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