The Federal Reserve raised its benchmark interest rate by 25 basis points on September 16, 2026, bringing the target range to 3.75%–4.00%, the first increase since July 2023. The vote by the Federal Open Market Committee was unanimous at 12-0. This decision comes as projected inflation reaches 3.7% for 2026, well above the Fed’s 2% target, driven partly by rising energy prices linked to the Iran conflict. JPMorgan and BNY Mellon immediately raised their prime lending rates to 7%, while two-year Treasury yields climbed to 4.7% and money market funds are now priced near 4%.
Source: Read the original article
