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Fed September 2026 Rate Increase and New Target Range

The Federal Reserve raised the federal funds target range by 0.25 percentage point to 3.75%–4.00% on September 16, 2026.

Timeline

  1. June 17, 2026: The target range stood at 3.50%–3.75%.
  2. September 16, 2026: The FOMC raised the range to 3.75%–4.00%.
  3. After September 16: Banks and markets continued repricing consumer and wholesale rates.

On September 16, 2026, the Federal Open Market Committee raised the federal funds target range by 25 basis points, or 0.25 percentage point, to 3.75 percent to 4.00 percent. The twelve voting members listed in the statement supported the action unanimously. [1][2]

The official statement described economic activity as expanding at a solid pace, consumer spending as resilient, productivity growth as strong and capital investment as robust. It said job gains had kept pace with labor-force growth, unemployment had changed little and inflation remained elevated. [1]

The committee ties its decisions to maximum employment and price stability. It said future adjustments would depend on incoming data, the evolving outlook and the balance of risks. That language means the September increase did not mechanically promise another move at the next meeting. [1]

The federal funds rate is an overnight wholesale funding rate. The FOMC sets a target range and the Federal Reserve uses administered rates and market operations to help keep trading within it. The target is not a retail loan offered directly to households. [1][2]

Mortgage, credit-card, auto-loan and savings rates can respond through bank funding costs, market yields, risk and expectations about future policy. The size and timing differ. A quarter-point Fed move therefore does not guarantee an immediate quarter-point change in every consumer account. [1]

The September range was higher than the 3.50 percent to 3.75 percent range recorded in June. Comparing meeting statements provides the cleanest policy timeline; daily effective rates, Treasury yields, economic projections and speeches answer related but different questions. [1][2]

Borrowers and savers should check the actual annual percentage rate or yield offered by their institution. A dated FOMC explainer is useful for understanding the policy backdrop, while current account terms determine the personal financial impact. Deposit insurance, fees, credit risk and the length of a fixed-rate commitment also matter when comparing financial products. [1][2]

Sources

  1. Federal Reserve — September 2026 FOMC statement
  2. Federal Reserve — 2026 FOMC release index

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