Story perspectives

Fed Unanimously Raises Rates to 3.75%–4.0%

By Drooid · Sep 16, 2026, 10:10 PM UTC · How we work

Summary

Story summary

The Federal Reserve (Fed) raised its interest rate by a quarter point to 3.75%–4.0% on September 16, 2026.
The Federal Open Market Committee (FOMC) voted unanimously, signaling at least one more rate hike this year.
Fed Chair Kevin Warsh said inflation remains too high and the move aids a return to the 2% goal.
The August CPI rose 3.4% year-over-year and 0.4% month-over-month, the sharpest gain since May.

History

Historical Context

In the late 1970s, high inflation—13.5% in 1980—prompted newly appointed Fed Chair Paul Volcker to raise the federal funds rate to a 20% peak by June 1981, ending stagflation. The September 2026 unanimous FOMC decision, chaired by Kevin Warsh, again adopts aggressive policy tightening as inflation rises, echoing the Volcker shock’s legacy.

1 of 2

Story summary

The Federal Reserve (Fed) raised its interest rate by a quarter point to 3.75%–4.0% on September 16, 2026.
The Federal Open Market Committee (FOMC) voted unanimously, signaling at least one more rate hike this year.
Fed Chair Kevin Warsh said inflation remains too high and the move aids a return to the 2% goal.
The August CPI rose 3.4% year-over-year and 0.4% month-over-month, the sharpest gain since May.

1 / 2