The Fed Just Raised Rates for the First Time in Three Years and Warns Another Hike Is Coming

The Federal Reserve released the 16 September 2026 FOMC statement after a unanimous 12-0 vote to raise the federal funds target range by 25 basis points to 3.75%-4.00%. CNBC (Jeff Cox) reported it as the first hike since July 2023.

This is an official FOMC policy statement plus the Summary of Economic Projections. Another hike this year is the SEP path, not a calendar guarantee.

The committee said inflation remains elevated and that the action will support a timelier return to the 2 percent goal. Chair Kevin Warsh said inflation has been too high for too long. He tied the unanimous vote to a strong labor market, inflation still above target, and tension in the Middle East.

In July, three FOMC members voted against a hold and preferred a quarter-point hike. On 16 September the committee was unanimous.

CNBC said a strong majority of SEP participants still see another hike this year. Officials nudged 2026 PCE to 3.7 percent headline and 3.4 percent core. In those projections, inflation does not return to 2 percent until 2029.

Related rate and energy tape includes Saudi crude shipments to Europe halted, UK inflation at 3.1 percent on a fuel shock, and the Senate block of the CLARITY crypto bill.

Variable-rate credit and mortgage shoppers should re-price against another hike still on the table.