Fed Raises Rates to 3.75%–4.00% as Inflation Risks Keep Markets on Edge

Washington, 17 September 2026 – The Federal Reserve has increased its benchmark interest-rate range by 25 basis points to 3.75%–4.00%, reinforcing the challenge facing global investors as persistent inflation competes with resilient economic activity. The unanimous decision places renewed emphasis on financing costs, rather than an early return to cheaper capital, across equity, bond and currency portfolios.

The Federal Open Market Committee described economic expansion as solid, domestic spending as resilient and capital investment as robust. It said inflation remained elevated while employment growth broadly matched labour-force growth and unemployment had changed little. The committee reiterated its commitment to a 2% inflation objective and an ample-reserves operating framework. The official target range is important: the decision was not an increase to 5.50%.