Fed Lifts Key Rate to 3.75%-4%, First Hike Since 2023

The Federal Reserve unanimously raised its benchmark interest rate by a quarter point to 3.75%-4% on September 16, 2026. It is the first increase since July 2023 and the first under Chair Kevin Warsh. Because that rate sets borrowing costs across the U.S. economy, the return to tightening will ripple through credit.