WASHINGTON — The Federal Reserve on Wednesday, Sept. 16, 2026, raised its benchmark interest rate for the first time since July 2023, lifting the federal funds target range by a quarter point to 3.75%–4.00% in a unanimous 12–0 vote, according to the Fed’s official FOMC statement and reporting from CNBC and Reuters.

The decision, announced about 2:00 p.m. ET after a two-day meeting, is the first rate increase under Chair Kevin Warsh. The statement said inflation “remains elevated” and that “today’s policy action will support a timelier return to the Committee’s 2 percent goal,” adding: “The Committee will deliver price stability.”

At his post-meeting news conference, Warsh said inflation has been “too high … for too long,” CNBC reported. He said the committee must be confident underlying inflation is moving to the 2% objective “clearly and at sufficient speed,” and that “today, the FOMC decided that this standard has not been satisfied.” Warsh also cited a strong economy and labor market alongside Middle East tension as factors behind the unanimous move, saying those conditions “lend themselves to a firm unanimous decision today,” according to CNBC.

Updated Summary of Economic Projections showed 16 of 18 participants expect at least one more hike this year; Warsh again did not submit a rate projection, Reuters and CNBC reported. Officials nudged up 2026 inflation forecasts to about 3.7% headline PCE and 3.4% core PCE — each 0.1 percentage point higher than June — per the Fed’s SEP tables and CNBC. Coverage has pointed to the Iran war energy shock, tariffs, and AI-related investment among drivers keeping price pressures elevated.

Dated Wednesday, Sept. 16, 2026: first Fed hike since July 2023; funds rate to 3.75%–4.00%; 12–0 under Chair Warsh; majority of dots see another hike this year.

Sources