The Federal Reserve has raised its benchmark interest rate by a quarter percentage point, marking its first rate hike in three years. Fed Chairman Warsh is scheduled to speak following the announcement.
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Key facts
- The Federal Reserve raised its benchmark interest rate by a quarter percentage point.
- It is the central bank's first rate hike in three years.
- Fed Chairman Warsh is set to speak after the decision.
- The move was reported by CNBC on September 16, 2026.
The Federal Reserve has raised its benchmark interest rate by a quarter percentage point, according to CNBC. The move represents the central bank’s first rate hike in three years.
Following the announcement, Fed Chairman Warsh was scheduled to speak publicly about the decision, CNBC reported. Such remarks from the head of the central bank are typically closely watched by investors and analysts for signals about the direction of future monetary policy.
A quarter-percentage-point increase, sometimes described as 25 basis points, is a standard incremental adjustment used by the Federal Reserve when it changes its benchmark rate. The benchmark rate influences borrowing costs across the economy, from mortgages and credit cards to business loans.
The decision marks a notable shift after a three-year period without a rate increase. CNBC’s coverage of the Fed meeting was published on September 16, 2026.
The report did not include additional details about the specific level of the new benchmark rate, the reasoning behind the decision, or the vote among policymakers. Further information was expected from Chairman Warsh’s remarks following the announcement.
Why it matters
The Federal Reserve's benchmark interest rate affects the cost of borrowing for households and businesses across the country, influencing everything from mortgage rates to credit card interest. A first rate hike in three years signals a shift in the central bank's approach that could ripple through financial markets and the broader economy.
Frequently asked questions
How much did the Federal Reserve raise interest rates?
The Federal Reserve raised its benchmark interest rate by a quarter percentage point, according to CNBC.
When was the last Fed rate hike before this one?
According to CNBC, this is the Federal Reserve's first rate hike in three years.
Who is speaking after the Fed's rate decision?
Fed Chairman Warsh was scheduled to speak following the announcement, CNBC reported.
Timeline
- Watch live: Fed Chairman Warsh speaks after central bank rolls out first rate hike in three years
CNBC Top News: The Federal Reserve raised its benchmark interest rate by a quarter percentage point.