# Fed Raises Rates for First Time in Three Years

- Topic: business
- Source: [CNBC](https://www.cnbc.com/2026/09/16/fed-rate-decision-september-2026.html)
- Published: 2026-09-16
- Original: https://www.cnbc.com/2026/09/16/fed-rate-decision-september-2026.html
- Language: en
- Image: https://image.cnbcfm.com/api/v1/image/108363272-1789581255135-108363272-1789501068231-gettyimages-2287527612-WARSH_FOMC.jpeg?v=1789581273&w=1920&h=1080

## At a glance

- Fed approves 25‑basis‑point rate hike, first since July 2023.
- FOMC votes 12‑0, raising target range to 3.75‑4%.
- Dot plot shows 16 of 18 officials expect another hike later this year.
- Fed projects inflation to stay above 2% until 2029, with cuts only in 2028‑29.

## Sources

- [CNBC](https://www.cnbc.com/2026/09/16/fed-rate-decision-september-2026.html)

## The story

The Federal Reserve announced a 25‑basis‑point increase in its benchmark overnight funds rate, the first hike in more than three years, on Wednesday. The Federal Open Market Committee voted unanimously 12‑0 to lift the target range to 3.75‑4%, a move that markets had largely priced in. In its post‑meeting statement, the Fed said inflation remained elevated and that the action would help the economy return to its 2 percent price‑stability goal. The committee’s dot‑plot projections show that 16 of 18 participants expect another rate increase later this year, with four officials forecasting two additional hikes. The Fed also raised its inflation outlook, projecting headline PCE at 3.7 % and core PCE at 3.4 % for 2026, and indicated it would not reach the 2 percent target until 2029. The decision follows a period of high energy prices and a stabilizing labor market, prompting officials to weigh the cost of continuing to tolerate higher inflation. Treasury yields and mortgage rates have already risen in response, with the 10‑year note up about a full percentage point from its February low. The Fed’s move signals a shift toward tighter policy as it seeks to curb inflationary pressures.

> Summary by Daily Read Bytes. [Read the original source](https://www.cnbc.com/2026/09/16/fed-rate-decision-september-2026.html)