Expanded original Quickanomics reporting with the source’s material findings, comparisons and qualifications at all three reading depths. Read the current version
On September 16, 2026, the Federal Reserve's Federal Open Market Committee raised the by 25 to 3.75-4%. This move supports the Fed's dual mandate amid solid economic growth characterized by resilient domestic spending, strong productivity, robust capital investment, and steady job gains with stable unemployment. remains elevated, and the policy action is intended to facilitate a timely return to the 2% target and maintain price stability.
Federal Reserve policy decision
The Committee unanimously approved raising the by 0.25 to 3.75-4%. This adjustment is part of the Fed's ongoing efforts to fulfill its dual mandate of maximum employment and price stability.
Current economic conditions
Economic activity is expanding at a solid pace despite elevated uncertainty partly due to geopolitical factors. Domestic spending has been resilient, productivity growth is strong, capital investment is robust, and job gains have kept pace with the workforce. The unemployment rate has changed little.
outlook and policy rationale
remains elevated, prompting the Committee to act to support a timelier return to its 2% goal. The Fed emphasizes its commitment to delivering price stability through this policy action.
Facts and qualifications
The Fed increased its policy-rate target by 25 to a range of 3.75% to 4%. The does not guarantee a particular change in household borrowing costs.
The Fed described growth and employment as resilient, while noting elevated uncertainty. This is the Fed’s assessment, not independent confirmation.
The Fed said remained elevated and linked the decision to its 2% goal. Its stated objective is not a guarantee of the outcome.
