FOMC Raises Fed Funds Rate Range by 25 Basis Points in 12-0 Vote

02:21 PM EDT, 09/16/2026 (MT Newswires) -- The Federal Open Market Committee raised the target range for its federal funds rate to 3.75% to 4.00% Wednesday on a 12-0 vote, while projections suggest another rate hike is possible this year. "Inflation remains elevated," the FOMC said in its statement. "Today's policy action will support a timelier return to the Committee's 2% goal. The Committee will deliver price stability." Median expectations in the Summary of Economic Projections now show a further rate hike this year, as the median expectation was adjusted up to 4.1% from 3.8% in the previous update in June, reflecting both Wednesday's action and expectations for a further increase. This is expected to be followed by no rate change in 2027, keeping the median at 4.1% before dipping to 3.9% in 2028, ahead of the previously expected 3.4%, and then falling further to 3.6% in 2029. The SEP shows an upward revision to inflation expectations for 2026, with PCE inflation not expected to decline to the 2% goal until 2029. The unemployment rate is expected to end 2026 at 4.1% and remain there for the next few years, while GDP growth is seen at 2.3% at the end of 2026 before slipping to 2.4% in 2027, 2.2% in 2028 and 2.1% in 2029.