Federal Reserve raises benchmark rate to 3.75%-4.00% and signals another hike

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Federal Reserve raises benchmark rate to 3.75%-4.00% and signals another hike

monetary_policy2026-09-18 17:29:27 UTCimp 0.88KREF -0.35STWD -0.34DHI -0.30

On September 16, 2026, the Federal Reserve raised the target range for the federal funds rate to 3.75%-4.00%. Its new projections showed 16 of 18 policymakers expecting at least one additional 25-basis-point hike by year-end 2026, with the policy rate projected at 4.00%-4.25% at year-end 2026 and at the same level at year-end 2027.

Occurred 2026-09-16 18:00:00 UTCSurprise 0.32Confidence 0.97
Rationale

Reuters directly reports a new Federal Reserve policy action and accompanying forward guidance: the benchmark rate was raised to 3.75%-4.00%, while projections showed 16 of 18 policymakers expecting another quarter-point increase and rates remaining at 4.00%-4.25% through year-end 2027. This is a valid, broad, forward-looking monetary-policy development; market-performance commentary is excluded. Importance is high because the decision affects rates, currencies, credit conditions and asset valuations, but surprise is only moderate because pre-meeting context indicated that a hike was widely expected and the main incremental information was the more hawkish projection. The occurrence time is estimated at 18:00 UTC from contemporaneous decision alerts, rather than the 19:10 UTC publication time of the Reuters report, so timestamp confidence is slightly below overall factual confidence. The prior event match is retained: this is not treated as an exact duplicate of the separately captured hike and projection developments, but it belongs to existing event 2408. Approved stakeholders are limited to companies with explicit evidence of material exposure through mortgage demand, refinancing, bank repricing, insurance reinvestment, private credit, MBS funding, or debt-funded capacity; generic and weaker second-order exposures are omitted.

EventsFederal Reserve 2026 Inflation and Rate-Hike Debate
Evidence
Dollar rises after Fed hikes rates in bid to counter inflation
reuters2026-09-16 19:10:58 UTCOpen source
The Fed lifted the benchmark interest rate to the 3.75%-4.00% range
New policy projections showed 16 of 18 policymakers anticipate at least one more quarter-percentage-point hike by the end of this year
the policy rate rising to the 4.00%-4.25% range by the end of this year and ending 2027 at the same level
Global Yields Rise on Fed Hike, Warsh Remarks — 3rd Update
dow_jones2026-09-16 20:12:00 UTCOpen source
The central bank increased the benchmark federal-funds target range by a quarter point to between 3.75% and 4%, in the first rate hike since 2023. The majority of officials predicted one more uptick this year.
Latam stocks, FX slip after Fed hike; Brazil rate decision in focus
reuters2026-09-16 20:31:21 UTCOpen source
Most Latin American stocks and currencies fell on Wednesday after the U.S. Federal Reserve raised interest rates and signaled further increases in borrowing costs
The unanimous decision, the first under new Fed Chair Kevin Warsh, reinforced expectations that policymakers could raise rates again this year if inflation pressures
Lift off!
reuters2026-09-16 21:00:00 UTCOpen source
The U.S. Federal Reserve raised interest rates on Wednesday for the first time in more than three years and signaled more tightening lies ahead
The Federal Reserve raised interest rates on Wednesday and flagged further increases in borrowing costs in coming months
Financials Down on Credit Fears — Financials ROundup
dow_jones2026-09-16 21:24:00 UTCOpen source
The Federal Reserve raised interest rates for the first time in three years, taking back some of the monetary stimulus provided last year.
The vast majority of officials penciled in one more hike this year in the "dot plot" of projections released after their meeting.
KeyCorp, Fifth Third Bancorp, Citizens Financial Group, Walker & Dunlop, and PNC Financial Services Group Shares Are Falling, What You Need To Know
yahoo2026-09-16 22:44:52 UTCOpen source
the Federal Reserve delivered its first rate hike in more than three years and Chair Kevin Warsh stressed that inflation risks remain elevated.
the Fed unanimously raised the overnight funds rate by a quarter point to a 3.75%–4% target range and signaled another hike could come this year.
inflation is "too high, and has been for too long"
walter_bloomberg2026-09-16 23:04:07 UTCOpen source
President Trump criticized the Fed after its unanimous 25bp hike to 3.75%–4.00%, demanding rates be cut to 1% or lower.
Meanwhile, 16 of 18 policymakers see at least one more hike this year, with Warsh warning that inflation remains “too high” and underlying trends have not improved.
Gold ticks up from near six-week low as investors weigh Fed outlook
reuters2026-09-17 00:33:24 UTCOpen source
The Fed raised interest rates on Wednesday and flagged more hikes in the coming months, with new U.S. central bank chief Kevin Warsh joining a unanimous decision that effectively acknowledges the Trump administration's inability so far to control inflation that policymakers worry could worsen.
There’s been a pretty wide-ranging set of data, including the labor markets, that the economy has strengthened
Hawkish Fed lifts dollar to seven-week high as focus turn to BOJ
reuters2026-09-17 02:05:07 UTCOpen source
The dollar clung to a seven-week high on Thursday after the Federal Reserve raised interest rates and flagged more hikes in coming months, while investors awaited decisions from the Bank of England later and the Bank of Japan on Friday.
The dollar ripped higher alongside US Treasury yields, after new central bank chief Kevin Warsh joined a unanimous decision to hike interest rates, while officials validated a hawkish path and projected one more increase in 2026.
"(Warsh) definitely sounded more hawkish than expected, and the fact that he provided guidance on future hikes surprised the markets, causing them to reprice policy higher, which ultimately pushed the dollar higher," said Carol Kong, currency strategist at Commonwealth Bank of Australia.
Australia, NZ dollars nurse losses as markets wager on hawkish Fed
reuters2026-09-17 02:55:03 UTCOpen source
The U.S. Federal Reserve raised rates by 25 basis points, as expected, while also projecting at least one more increase by December.
Indian bonds seen declining as Fed hike could pressure RBI to mirror move
reuters2026-09-17 02:48:01 UTCOpen source
The U.S. Federal Reserve hiked interest rates for the first time since July 2023, which could pressure the domestic central bank to follow suit as it battles rising inflation.
Indian shares seen opening flat after Fed signals more hikes; NSE IPO in focus
reuters2026-09-17 02:30:41 UTCOpen source
The Fed raised rates by 25 basis points in a unanimous decision, its first increase in more than three years. Updated quarterly projections showed that 16 of 18 policymakers expected at least one additional 25-basis-point increase by year-end.
Fear & Greed Index Hits Extreme Fear After Fed Rate Hike
2026-09-17 00:59:11 UTCOpen source
The Federal Reserve raised its benchmark interest rate by 25 basis points to 3.75%-4% on September 16, citing persistent high inflation and energy costs, with projections for at least one more hike this year.
Indian shares flat after Fed rate hike; NSE IPO in focus
reuters2026-09-17 03:57:00 UTCOpen source
The Fed raised rates by 25 basis points in a unanimous decision overnight, its first increase in more than three years
South Korea shares rise as Fed rate hike eases uncertainty
reuters2026-09-17 04:05:48 UTCOpen source
The Fed raised rates on Wednesday and flagged more hikes in the coming months
Indian bonds dip as Fed move seen as final straw pushing RBI toward hikes
reuters2026-09-17 04:44:44 UTCOpen source
Indian government bonds fell in early trade on Thursday after the U.S. Federal Reserve raised rates for the first time since July 2023 and signalled another hike later this year, adding pressure on the RBI to follow suit.
The decision, the Fed's first such move in over three years, was unanimous.
Gold rises as investors digest Fed hike, oil rally stalls
reuters2026-09-17 04:52:10 UTCOpen source
Gold prices rose on Thursday as investors digested the U.S. Federal Reserve's interest rate hike and its signal that further policy tightening may follow
Fed Policy Outlook Weighs on Yen Ahead of BOJ Decision
dow_jones2026-09-17 06:46:00 UTCOpen source
The Fed on Wednesday raised its rates for the first time in three years, as widely expected, with the vast majority of officials penciling in one more hike this year via its dot plot.
Short-end euro zone bond yields inch up after Fed hike
reuters2026-09-17 07:26:06 UTCOpen source
The Fed raised the benchmark overnight interest rate by a quarter of a percentage point to the 3.75% to 4% range, its first increase in three years, while its projections showed a majority of policymakers anticipate at least one more hike by the end of the year.
Dollar eases from seven-week peak as oil prices extend decline
reuters2026-09-17 07:58:47 UTCOpen source
The Fed raised rates and signalled further hikes, with Chair Kevin Warsh reaffirming the central bank's independence despite repeated calls from U.S. President Donald Trump for lower borrowing costs.
U.S. Treasury Yields Fall as Market Regains Trust in Fed's Inflation Resolve
dow_jones2026-09-17 08:33:00 UTCOpen source
The Fed's well-anticipated quarter-point interest-rate hike, which brought the fed funds target rate range to 3.75%-4.00% in a unanimous vote on Wednesday, and the prospect of another rate hike this year, improved the Fed's credibility among investors.
Currencies retreat as Fed lifts dollar, focus turns to Czech central bank
reuters2026-09-17 09:05:54 UTCOpen source
The dollar clung to a seven-week high on Thursday after the Federal Reserve raised interest rates and flagged more hikes in the coming months.
The Fed Raised Rates. What Comes Next?
nyt2026-09-17 09:05:11 UTCOpen source
Kevin M. Warsh, the chairman of the Federal Reserve, on Wednesday left open-ended how much more interest rates may have to rise to tame inflation.
American Savings Bank Jumps More Than 6% in Trading Debut: NYSE Content Update
pr_newswire2026-09-17 13:21:00 UTCOpen source
The Federal Reserve raised interest rates for the first time since 2023.
The central bank raised interest rates by 25 basis points, while policymakers signaled another rate hike could take place later this year.
In his news conference, Fed Chair Kevin Warsh emphasized that inflation remains
Canadian dollar steadies near six-week low as interest rate spreads widen
reuters2026-09-17 17:24:48 UTCOpen source
The Fed on Wednesday raised its benchmark interest rate by a quarter of a percentage point to the 3.75%-4.00% range and flagged further increases in borrowing costs in coming months.
Stocks Climb as Markets Retrace Post-Fed Moves — WSJ
dow_jones2026-09-17 18:05:00 UTCOpen source
officials raised interest rates by a quarter percentage point and signaled at least one more increase this year.
U.S. Treasury Yields Steady as Bond Markets Stabilize; European Yields Rise
dow_jones2026-09-18 08:53:00 UTCOpen source
The Fed's 25-basis-point interest-rate hike on Wednesday, and signals of another raise to come this year, convinced markets about the seriousness of the Fed's inflation-fight.
Global Bond Yields Rise Amid Expectations of More Rate Rises — 2nd Update
dow_jones2026-09-18 17:22:00 UTCOpen source
The Fed raised interest rates by a quarter point on Wednesday, and signaled another raise to come this year