Federal Reserve expected to announce interest rate increase – live

• The anticipated quarter-point hike would bring the federal funds rate to 3.75%-4%, reversing the post-pandemic rate policy after inflation has remained above the Fed's 2% target for over five years
• Trump recently posted that rates 'should be going down now, not up' and has demanded the U.S. have 'the lowest interest rate in the world,' creating tension with his handpicked Fed chair
• The announcement is scheduled for 2pm ET with a press conference at 2.30pm ET, just weeks before November midterm elections that will determine Republican control of Congress

Summary

The U.S. Federal Reserve is expected to announce its first interest rate increase in three years on September 16, 2026, at 2:00 PM ET, with Fed Chair Kevin Warsh scheduled to hold a press conference at 2:30 PM.

Key Details:

• The Fed is anticipated to raise rates by 25 basis points (0.25%), bringing the federal funds rate to a target range of 3.75%-4%
• This marks the first hike since 2023, following the conclusion of pandemic-era monetary policy
• Inflation has remained above the Fed's 2% target for over five years, exacerbated by an ongoing U.S.-Iran conflict under President Donald Trump

Political Pressure:

Kevin Warsh, Trump's handpicked Fed chair who was sworn in May 22, 2026, faces intense pressure from the president to cut rates instead. Trump recently stated the U.S. should have "the lowest interest rate in the world" and has become increasingly vocal in his criticism, particularly as Warsh appears poised to proceed with the rate hike.

Market Implications:

The decision comes weeks before crucial November midterm elections that will determine Republican control of Congress. Affordability and cost-of-living concerns are the dominant voter issues, making this rate increase politically sensitive. The expected hike signals the Fed's commitment to combating persistent inflation despite presidential pressure, potentially testing central bank independence.

The move represents a hawkish shift after years of accommodative monetary policy, with significant implications for borrowing costs, consumer spending, and election outcomes.