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Fed Raises Rates 25 Basis Points to 3.75%-4%

By Drooid · Oct 6, 2026, 12:41 AM UTC · How we work

Summary

Story summary

The Federal Reserve’s Open Market Committee raised the target rate by 25 basis points to 3.75%-4%.
The committee reported consumer inflation at 3.4% and shelter costs up 3%.
Apollo chief economist Torsten Slok warned of a “higher rates, higher rent doom loop” for inflation.
August housing starts fell 2.6% to 1,275,000, below August 2025 levels.
CME FedWatch shows a 79.5% chance the Fed will hold rates in October.

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Story summary

The Federal Reserve’s Open Market Committee raised the target rate by 25 basis points to 3.75%-4%.
The committee reported consumer inflation at 3.4% and shelter costs up 3%.
Apollo chief economist Torsten Slok warned of a “higher rates, higher rent doom loop” for inflation.
August housing starts fell 2.6% to 1,275,000, below August 2025 levels.
CME FedWatch shows a 79.5% chance the Fed will hold rates in October.