Interest Rates: Fed Expected to Raise Benchmark Rate Today

U.S. interest rates are at the center of attention on September 16, 2026, as the Federal Reserve prepares to announce its latest policy decision. Markets are widely expecting a quarter-point increase, which would be the Fed’s first rate hike since 2023.

Quick Answer

The Federal Reserve is expected to raise its benchmark interest rate by 0.25 percentage point on September 16, taking the target range to 3.75%–4.00%. The decision is scheduled for 2 p.m. ET, followed by Chair Kevin Warsh’s press conference at 2:30 p.m. ET. The Fed’s guidance on future hikes could be just as important as today’s decision.

Current Status: Fed Rate Decision Is Due Today

The September 15–16 Federal Open Market Committee meeting comes as inflation remains above the Federal Reserve’s 2% target. August consumer inflation was reported at 3.4% annually, while recent import-price and retail-sales data have added to concerns about continued price pressure.

5 Key Developments

1. Rate hike expected: Markets are pricing in a 25-basis-point increase to 3.75%–4.00%.
2. First hike since 2023: A move today would mark the first U.S. rate increase in more than three years.
3. Inflation remains elevated: August CPI was 3.4% year over year.
4. Consumer spending remains strong: U.S. retail sales jumped 1.2% in August, exceeding expectations.
5. Future policy is the big question: Investors are watching whether Warsh signals additional increases.

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Why Are Interest Rates Rising Again?

Persistent inflation is a major reason markets expect higher interest rates. Rising energy costs and stronger-than-expected economic data have increased concern that inflation may not return quickly to the Fed’s 2% goal.

Higher rates generally increase borrowing costs for mortgages, credit cards, auto loans and other forms of consumer credit, while potentially improving returns on some savings products.

When Will the Fed Announce the Interest Rate Decision?

The Federal Reserve is scheduled to release its decision at 2 p.m. ET on September 16, 2026. Chair Kevin Warsh is scheduled to hold the post-meeting press conference at 2:30 p.m. ET.

What Happens Next?

Markets will focus on the Fed’s updated economic projections and Warsh’s comments about future policy. A rate increase is already heavily anticipated, so the language surrounding the next few meetings could drive the bigger market reaction.

Final Take

Interest rates are entering a potentially important new phase as the Fed prepares for its first expected hike since 2023. Today’s decision matters, but the Fed’s outlook for inflation and future rate increases may determine what happens next for borrowing costs and financial markets.

 

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FAQs

1. Are interest rates going up today?

The Federal Reserve is widely expected to raise its benchmark rate by 0.25 percentage point on September 16, 2026. The decision had not yet been announced at the time of writing.

2. What will the Fed rate be after the expected hike?

If the expected quarter-point increase occurs, the federal funds target range would move to 3.75%–4.00%.

3. Why is the Fed considering a rate hike?

Persistent inflation, higher energy costs and resilient economic activity have increased expectations for tighter monetary policy.

4. What time is the Fed decision today?

The scheduled announcement is 2 p.m. ET, followed by the Fed chair’s press conference at 2:30 p.m. ET.

5. Will interest rates keep rising?

That is not confirmed. Future moves will depend on incoming inflation, employment, economic and financial-market data and the Fed’s policy assessment.