Fed raises rates

In a unanimous decision today, the Fed raised key interest rates by 25 basis points to accelerate progress toward its inflation target.

Bernd Weidensteiner

Commerzbank Economic Research

09/17/2026

The main factor behind the rate hike was likely the tight conditions in the bond market, which would likely have made maintaining the status quo too risky. We are adjusting our Fed forecast and expect another rate hike in December.

Fed delivers the expected rate hike ...

The Fed raised its key interest rates by 25 basis points today. The fed funds target range was thus raised to 3.75%–4.00%. Today’s "policy action will support a timelier return to the Committee's 2 percent goal", according to the Fed’s statement . The Federal Reserve thus met the expectations—which would be better described as demands—of market participants. The Fed sent a clear signal today that its promise to reach the inflation target is not just talk, but is backed by action. The decision was unanimous, which also sends a strong signal.

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Fed raises rates

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