Federal Reserve Expected to Raise Rates by Quarter Point
The Federal Reserve may raise interest rates on Wednesday, September 16, 2026. This would be the first rate hike since 2023.
The new range would be 3.75% to 4%. Markets see a 90% chance of this happening.
Still the move is not certain. The decision comes at 2 p.m.
ET. Fed leaders are losing confidence inflation will cool on its own.
High energy prices and persistent inflation raised hike expectations. Some officials still think inflation will ease without action.
This rate hike would conflict with Trump's wishes. President Trump has said he wants rates cut instead.
Federal Reserve official Warsh will brief reporters after the meeting. That briefing is set for 2:30 p.m. ET.
Klear Note — The Federal Reserve is the United States’ central bank. Higher rates make borrowing costlier, which can help slow inflation.
Key Terms 3
- Federal Reserve The US central bank that sets interest rates.
- quarter point A change of 0.25% in interest rates.
- Warsh A Federal Reserve official who will brief reporters after the meeting.