At its fifth meeting of the year, the Federal Reserve ( Fed ), led by its president Kevin Warsh, along with the group of the 12 members of the Federal Open Market Committee ( FOMC), made the announcement through a press conference on Wednesday, September 16 that interest rates will increase 0. 25 percentage points, resulting in a range of 3. 7 % to 4 %.
The Fed's monetary policy regulators made their decision at a time when there are high levels of political and economic tension, with the most recent annual Consumer Price Index ( CIP ) report of 3. 4 % recorded in August, while the underlying IPC increased by 2. 4 %, which maintains the persistent inflation rate above the target of 2 %.
However, a crucial factor for the Fed, such as the labor market, revealed a steady rate of growth when it announced a 162 000 job increase over the past month and an unemployment rate that is still at 4 %, according to data from the Bureau of Labor Statistics ( BLS ).
This is the interest rate for the months of March 2022 to September 2026 thanks to this new Federal Reserve choice:
