The Federal Reserve raised the federal funds target to 3.75-4 per cent from 3.5-3.75 per cent in a unanimous decision on 16 September 2026. Al Jazeera calls it a 25-basis-point move, the first increase in three years, with fuel prices tied to the US-Iran war weighing on inflation.
Economics & Markets··Morning
A unanimous step to 3.75-4 per cent
BBC reports the Federal Reserve raised the federal funds target to 3.75-4 per cent from 3.5-3.75 per cent in a unanimous decision on 16 September 2026. The live file, timestamps 21:02 and 22:16 UTC, says the hike came despite opposition from President Donald Trump. Some traders thought another rise could take the range to 4-4.25 per cent before year end. Warsh spoke after the decision. The page says higher rates make loans dearer and can lift savings returns.[1]
The first increase in three years
Al Jazeera reports a 25-basis-point Federal Reserve hike to 3.75-4 per cent, the first increase in three years, as fuel prices tied to the US-Iran war weigh on inflation. The 16 September 2026 economy page calls it a quarter-point move and notes US midterm elections ahead. It attributes inflation pressure to soaring fuel prices amid the US-Iran war.[2]
Same night, same target range
BBC and Al Jazeera agree the new federal funds target is 3.75-4 per cent after a 25-basis-point step. Al Jazeera stresses the three-year gap and wartime fuel prices; BBC stresses the unanimous vote and Trump's opposition. Neither file says a further hike is decided.[1], [2]
