FOMC raises the federal funds rate target range by 1/4 percentage point, 12–0 vote (September 16, 2026)
The FOMC approved its statement by a 12–0 vote. It raised the target range for the federal funds rate by 1/4 percentage point to 3-3/4 to 4 percent, in support of the dual mandate. 1
The statement says the Committee is continuing its policy of maintaining ample reserves in the banking system. 1
The statement says economic activity is expanding at a solid pace and domestic spending has been resilient, while uncertainty remains elevated owing in part to geopolitical developments. It also says job gains have kept pace with the workforce and the unemployment rate has changed little. 1
The statement says inflation remains elevated and that the policy action will support a timelier return to the 2 percent goal. Chairman Warsh repeated this wording at the press conference. 12
At the press conference, Chairman Warsh said that hiring, private-sector earnings and business capital investment have improved in recent months and that credit flows have been robust. He said he would be hard pressed to describe broad financial conditions as restrictive, a view he said was widely shared by the Committee, and that the Committee therefore removed a dose of accommodation. The transcript gives the new range as 3 to 4 percent. 1
The Summary of Economic Projections shows real GDP growth of 2.3 percent for 2026 and 2.4 percent for 2027, and an unemployment rate of 4.1 percent for each year from 2026 to 2029. The longer-run figures are 2.0 percent for GDP growth and 4.2 percent for unemployment. 1