{
  "id": 7844710,
  "title": "US Federal Reserve raises interest rates for the first time since 2023",
  "url": "https://urgent.news/2026/09/16/us-federal-reserve-raises-interest-rates-for-the-first-time-since-2023",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-16T18:28:29.000Z",
  "source": {
    "name": "Guardian Business",
    "slug": "guardian-business",
    "url": "https://www.theguardian.com/business/2026/sep/16/us-federal-reserve-votes-hike-rates"
  },
  "original_language": "en",
  "account": "On Wednesday, the US Federal Reserve voted to raise interest rates for the first time since 2023, as it continues to battle inflation. The Federal Open Market Committee (FOMC) increased its benchmark rate by a quarter-percentage point to a range of 3.75% to 4%, marking the first rate hike since July 2023. This decision could place Kevin Warsh, the current Fed chair, in a challenging position regarding Donald Trump's expectations.\n\nTrump had previously stated that the US should have the \"lowest interest rate of any country in the world,\" and threatened to limit trade with nations experiencing trade deficits if the central bank failed to lower rates. Warsh, nominated by Trump, had been expected to cut rates, though he maintains independence from the White House.\n\nThe Fed's projections indicate another rate hike before the end of the year, with four officials predicting the benchmark rate could reach a range of 4.25% to 4.5% by year-end. Although economic growth and unemployment projections remain optimistic, Fed officials believe it will take until 2029 for inflation to reach the 2% goal.\n\nThe rise in inflation, primarily driven by the ongoing US-Israel war with Iran, has led to an average increase of $1 per gallon in gas prices compared to a year ago. Diesel fuel prices have also hit an all-time high of $6.31 per gallon. Inflation has also negatively impacted consumer sentiment and wage gains, with hourly earnings decreasing by 0.1% year-over-year in August.\n\nThe Fed's actions aim to control price increases by slowing economic activity. Higher interest rates impact various types of loans, including mortgages, car payments, and student debt. After inflation peaked at 9.1% in June 2022, the Fed raised rates 11 times between 2022 and 2023.\n\nSince the beginning of the year, when inflation was 1% lower, a Fed rate hike appeared unlikely. However, persistent high inflation and steady unemployment led to a rate hike in August. The grim economic outlook, combined with heightened inflation and wage stagnation, has raised concerns among voters as they prepare for the November elections. Both candidates have focused on cost-of-living concerns, with Trump promising a $5000 \"Trump dividend\" if Republicans maintain control of Congress.",
  "summary": "Fed committee votes unanimously to raise interest rate by a quarter-percentage point to a range of 3.75% to 4% The US Federal Reserve voted to raise interest rates on Wednesday for the first time since 2023 as the central bank continues to fight to tamp down inflation. The Fed’s open market committee voted unanimously to raise its benchmark interest rate by a quarter-percentage point to a range…",
  "key_points": [
    "US Federal Reserve raises interest rates by 0.25% to 3.75%-4%",
    "Kevin Warsh, Trump nominee, faces pressure to cut rates",
    "Inflation driven by US-Israel war with Iran, affecting gas prices"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}