The Federal Reserve is expected to raise interest rates on Wednesday, September 16, for the first time in three years as US policymakers respond to stubbornly high inflation.
The decision will come at the end of a two-day meeting of the Federal Open Market Committee, with markets widely anticipating a quarter-point increase in the central bank’s benchmark rate.
The Fed has held its target range at 3.5 to 3.75 per cent since its meeting in July. A rise would mark a shift away from the reductions delivered in 2025 and place renewed pressure on borrowing costs for households and businesses. ([federalreserve.gov](https://www.federalreserve.gov/newsevents/pressreleases/monetary20260729a.htm?utm_source=openai))
Inflation remains above the Federal Reserve’s 2 per cent target, while recent economic figures have pointed to resilient growth and a stronger-than-expected labour market. The latest data have increased expectations that officials will favour tighter policy rather than a cut.
The move would also put the central bank at odds with President Donald Trump, who has called for lower interest rates. The policy decision would be the first rate increase under Fed chair Kevin Warsh, according to reports by the Associated Press and other US media. ([apnews.com](https://apnews.com/article/e2e82957e490b7be205db6013f621c3d?utm_source=openai))
Federal Reserve governor Christopher Waller said earlier this month that incoming inflation figures would be important in determining whether he supported an increase at the September meeting. The Fed’s official calendar places the announcement at 2pm Washington time, followed by a press conference. ([federalreserve.gov](https://www.federalreserve.gov/newsevents/speech/waller20260903a.htm?utm_source=openai))
