# Fed Hikes Rates for First Time Since 2023

- Topic: business
- Source: [CBS News](https://www.cbsnews.com/news/fed-interest-rate-decision-today/)
- Published: 2026-09-17
- Original: https://www.cbsnews.com/news/fed-interest-rate-decision-today/
- Language: en
- Image: https://assets2.cbsnewsstatic.com/hub/i/r/2026/06/17/147b873e-311d-4c67-ad2e-1de99f61fed4/thumbnail/1200x630/5fdb9393ceb5fce5b76b0d8878c991b6/cbsn-fusion-fed-keeps-interest-rates-steady-under-new-chair-kevin-warsh-thumbnail.jpg

## At a glance

- Fed raises federal funds rate to 3.75‑4.00%, highest since Dec 2025
- Unanimous vote signals focus on price stability, no hikes in 2027
- CPI at 3.4% in August, driven by Iran‑war‑related energy spikes
- Stocks fell: Dow down 631 points, S&P 500 down 0.4%

## Sources

- [CBS News](https://www.cbsnews.com/news/fed-interest-rate-decision-today/)

## The story

The Federal Reserve lifted the federal funds rate by a quarter‑point to a 3.75‑4.00% target range, its highest level since December 2025, on a unanimous vote.  Chairman Kevin Warsh said the move reflects persistent inflation above the 2% goal, and that the Fed will keep rates steady through 2027.  In its quarterly projections, the Fed signaled a possible further hike later in 2026, but warned it is not the start of a new tightening cycle.  The decision came amid rising energy costs driven by the Iran war, which has pushed the August CPI to 3.4% year‑over‑year.  Wall Street reacted with a 1.2% drop in the Dow and a 0.4% decline in the S&P 500, as investors weighed the impact on borrowing costs.  Banks are expected to raise rates on credit cards, auto loans and mortgages, adding pressure to household budgets.  Consumer sentiment fell 13% from the same period last year, underscoring the broader economic slowdown.

> Summary by Daily Read Bytes. [Read the original source](https://www.cbsnews.com/news/fed-interest-rate-decision-today/)