Fed Unanimously Raises Rates by a Quarter Point

Fed Unanimously Raises Rates by a Quarter Point Bloomberg Wed, September 16, 2026 at 8:14 PM GMT+2 The Federal Reserve voted unanimously to raise interest rates by a quarter percentage point and penciled in an additional hike later this year, steps aimed at containing inflation that will test Chairman Kevin Warsh's relationship with President Donald Trump. The benchmark federal funds rate is now in a range of 3. 75% to 4%.

Bloomberg's Michael McKee reports. Video Transcript 00:01 Speaker A It is a rate increase, the first of a cycle, a unanimous decision to raise their benchmark rate a quarter point to three and three quarters to 4%. 16 members of the committee anticipate another increase this year.

Only two would hold here. Kevin Warsh, the chairman does not submit a dot. Eight, almost half see another increase, another rate increase next year, while six call for no change.

Four see rate cuts in 2027. One of them calls for rates to fall to three and a quarter percent. Almost as significant, they raised their long run view, essentially the neutral rate to 3.

2% from 3. 1% in June. The members see faster growth this year and next, 2.

3 and 2. 4% up a 10th each from their June forecast. And the economic activity the statement says is expanding at a solid pace.

Unemployment is forecast to remain at 4. 1% this year and hold at that level through 2029. Job gains, the statement says, have kept pace with the workforce and the unemployment rate has changed little.

Inflation though, according to the statement, remains elevated. The median outlook is seen higher this year, PCE headline at 3. 7% up from 3.

6% in June. Next year, it falls to 2. 3%.

Achieving the 2% target gets pushed out as usual two years to 2029 now. Core PC will be 3. 4% at the end of 2026, up a 10th.

Next year it's 2 and a half% unchanged. The statement concludes, today's policy action will support a timelier return to the committee's 2% goal. The committee will deliver price stability.