Bloomberg Surveillance · Wednesday, September 16, 2026
The Federal Reserve announced a 25 basis point rate hike, bringing the benchmark rate to 3.75%-4.00%. This marks the first increase in a cycle, with 16 committee members anticipating another hike this year. The Fed also raised its long-run neutral rate projection to 3.2% from 3.1%.
“It is a rate increase, the first of a cycle, a unanimous decision to raise their benchmark rate a quarter point to three and three quarters to four percent. Sixteen members of the committee anticipate another increase this year. Only two would hold here.”
“Almost as significant, they raise their long-run view, essentially the neutral rate, to 3.2% from 3.1% in June.”
“The members see faster growth this year and next, 2.3% and 2.4%, up a tenth each. from their June forecasts, and the economic activity, the statement says, is expanding at a solid pace.”