Bond markets anticipate an interest rate hike during the Federal Open Market Committee’s September 15-16, 2026 meeting, which would mark the first rate increase since 2023. The current federal funds target range stands at 3.50% to 3.75%, with an expected 25 basis point increase to 3.75% to 4.00%. Market participants, including Goldman Sachs, largely align with this forecast, despite varying CME FedWatch tool probabilities. The FOMC’s decision, along with comments from Chairman Kevin Warsh, is expected to shape future U.S. monetary policy and affect related financial markets.
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