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Federal Reserve Raises Rates to 3.75%-4% in Unanimous Vote

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Courtroom-sketch editorial illustration of the Marriner S. Eccles Federal Reserve Board Building in Washington, with its central entrance, flags, symmetrical trees, lawns, and paved approach, rendered in warm ochre and slate-blue pastel strokes.

The Federal Open Market Committee voted 12-0 to raise the federal funds target range by 0.25 percentage point to 3.75%-4.00%. The committee said economic activity was expanding at a solid pace and inflation remained elevated, adding that the move would support a timelier return to its 2% goal. An implementation note set interest on reserve balances at 3.90% and the primary credit rate at 4.0%, effective September 17. September projections put median 2026 GDP growth at 2.3%, unemployment at 4.1% and PCE inflation at 3.7%.

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