Fed raises federal funds rate by 25 basis points to 3.75%–4%

The Federal Open Market Committee raised the target range for the federal funds rate by 1/4 percentage point to 3-3/4 to 4 percent on Sept. 16, according to the Fed’s official statement. The decision passed on a 12–0 vote and was released at 2:00 p.m. EDT.

The Committee said economic activity is expanding at a solid pace, job gains have kept pace with the workforce, and the unemployment rate has changed little, while inflation remains elevated. It framed the move as support for a timelier return to the Committee’s 2 percent inflation goal and said it will deliver price stability. The statement also noted that uncertainty remains elevated owing, in part, to geopolitical developments, while domestic spending has been resilient, productivity growth is strong, and capital investment is robust.

The Committee said it is continuing its policy of maintaining ample reserves in the banking system.

The Fed separately released Summary of Economic Projections tables and charts from the Sept. 15–16 meeting alongside the rate decision.

By the numbers

• Federal funds target range: 3.75%–4.00% (up 25 basis points)
• Vote: 12–0
• Release time: 2:00 p.m. EDT, Sept. 16, 2026
• Dual-mandate framing: return to 2% inflation goal

Sources

1. Federal Reserve Board, “Federal Reserve issues FOMC statement,” Sept. 16, 2026
2. Federal Reserve Board, “Federal Reserve Board and Federal Open Market Committee release economic projections from the September 15-16 FOMC meeting,” Sept. 16, 2026

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