Federal Open Market Committee Raises Federal Funds Rate Target to 3-3/4 to 4 Percent

According to the Federal Reserve Press Releases published on September 16, 2026, the Federal Open Market Committee approved a statement by a vote of 12 to 0. The Committee determined that it would increase the target range for the federal funds rate by 1/4 percentage point, setting it at 3-3/4 to 4 percent, to align with the Federal Reserve's dual mandate. The Committee also stated that it is maintaining its policy of keeping ample reserves within the banking system.

The statement noted that economic activity is expanding at a solid pace. Furthermore, domestic spending has shown resilience, even as uncertainty remains high partly due to geopolitical developments. The Committee observed that productivity growth is strong and capital investment is robust. Regarding employment, job gains have kept pace with the workforce, and the unemployment rate has seen little change.

However, the Federal Reserve Press Releases indicated that inflation continues to be elevated. The Committee asserted that the current policy action would aid in achieving the Committee's 2 percent goal in a more timely manner, and the Committee expressed its commitment to delivering price stability.