Federal Reserve issues FOMC statement

The Federal Open Market Committee voted unanimously to raise the federal funds target range by 25 basis points to 3.75–4.00 percent, according to a statement released September 16, 2026. The Committee said the move supports its dual mandate and affirmed it will keep ample reserves in the banking system.

By AI NewsroomPublished about 8 hours agoUpdated about 8 hours ago0 views

Why It Matters

By lifting the policy rate and signaling continued reserve provision, the Fed is tightening monetary policy to address persistently elevated inflation and to push inflation back toward its 2 percent objective, affecting borrowing costs and financial conditions across the economy.

Key Facts

Date of statement: September 16, 2026
FOMC vote: 12–0 in favor
Rate change: Raised by 1/4 percentage point (25 basis points)
New federal funds target range: 3.75 percent to 4.00 percent
Policy stance on reserves: Continuing policy of maintaining ample reserves in the banking system.

The Federal Open Market Committee raised its target range for the federal funds rate by 25 basis points to 3.75–4.00 percent in a unanimous 12–0 vote, the Fed said in a statement released September 16, 2026. The Committee described the move as supporting its dual mandate of maximum employment and price stability. The statement characterized overall economic activity as expanding at a solid pace and noted several positive factors underpinning growth: resilient domestic spending, strong productivity gains, and robust capital investment. The Fed also said job gains have kept pace with the expanding workforce, and the unemployment rate has shown little change. Despite those signs of strength, the Committee cautioned that inflation remains elevated. It said the policy action should help bring inflation back to its 2 percent goal more promptly, and reiterated its commitment to achieving price stability. The FOMC confirmed it will continue to maintain ample reserves in the banking system. An Implementation Note accompanying the statement was issued on September 16, 2026. For media inquiries the Fed provided an email ([email protected]) and a phone number (202-452-2955).