Fed raises federal funds target range to 3.75–4%

The Federal Open Market Committee raised the federal funds target range by 0.25 percentage points to 3.75–4% on 16 September 2026. All 12 voting members supported the decision, according to the statement.

The FOMC described economic activity as expanding at a solid pace, with resilient domestic spending, strong productivity growth and robust capital investment. Job gains had kept pace with the workforce, while the unemployment rate had changed little.

The committee said inflation remained elevated and that the move would support a timely return to its long-run 2% goal. The statement does not set a fixed path for later rate decisions; the committee will continue to assess economic and inflation data.