Washington / Lagos – September 21, 2026
DDNewsOnline
The United States Federal Reserve has raised its benchmark interest rate by 25 basis points to a range of 3.75 to 4 percent, citing persistent inflation and the need to support a return to its 2 percent inflation target.
The Federal Open Market Committee (FOMC) approved the increase by a unanimous 12-0 vote at its September 16, 2026 meeting. The move raised the federal funds rate from its previous range of 3.50 to 3.75 percent.
The Federal Reserve said economic activity in the US is expanding at a solid pace, while domestic spending remains resilient. It also noted strong productivity growth and robust capital investment.
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According to the central bank, job gains have kept pace with the workforce and the unemployment rate has changed little, while inflation remains elevated.
The Fed said the latest rate increase is intended to support a faster return of inflation to its 2 percent target.
The decision marks the Federal Reserve’s first interest-rate increase since July 2023, after a series of rate cuts in 2025 had brought the benchmark rate down to 3.50–3.75 percent.
The latest move could have wider implications for global financial markets, including borrowing costs, the US dollar and investor appetite for riskier assets, as markets assess the direction of US monetary policy.
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By Onabanjo Boluwatife Ifeoluwa boluwatifeonabanjo3@gmail.com