September 16, 2026
July 29, 2026
Statement·Presser·Minutes
Kevin Warsh
September 16, 2026 FOMC Statement
FOMC statement
Federal Reserve issues FOMC statement
For release at 2:00 p.m. EDT
The Federal Open Market Committee approved the following statement for release by a 9 12 – 3 0 vote:
The Committee decided to maintain raise the target range for the federal funds rate at 3-1/2 to 3-3/4 by 1/4 percentage pointto 3-3/4to 4 percent, in support of the Federal Reserve's dual mandate. The Committee is continuing its policy of maintaining ample reserves in the banking system.
Economic activity is expanding at a solid pace despite elevated pace. While uncertainty that owes, remains elevated owing, in part, to the conflict in the Middle East. geopolitical developments,domestic spending has been resilient. Productivity growth is strong, and capital investment are strong. is robust. Job gains have kept pace with the workforce, and the unemployment rate has changed little.
Inflation remains elevated. Today's policy action will support a timelier return to the Committee's 2 percent goal. The Committee will deliver price stability.
For media inquiries, please email [email protected] or call 202-452-2955.
Implementation Note issued July 29, September 16, 2026
Inflation remains elevated relative to the Committee's 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. The Committee will deliver price stability.
Voting against the monetary policy action were Beth M. Hammack, Neel Kashkari, and Lorie K. Logan, who preferred to raise the target range for the federal funds rate by 1/4 percentage point at this meeting.
Our summary
What changed
- The FOMC raised the target range for the federal funds rate by 1/4 percentage point to 3-3/4 to 4 percent, after previously maintaining it at 3-1/2 to 3-3/4 percent.
- The vote was unanimous at 12-0, with no dissents, whereas the previous statement had a 9-3 vote with three members preferring a rate increase.
- The economic outlook language was revised: removed references to the Middle East conflict and supply shocks in energy, and added that domestic spending has been resilient.
- The description of productivity and investment changed from 'strong' and 'strong' to 'strong' and 'robust', respectively.
- The inflation language was simplified, dropping the mention of supply shocks and sector-specific price increases, and now states the policy action will support a timelier return to the 2 percent goal.
Implications
The unanimous vote and the removal of dissents suggest greater internal agreement on the need for tightening, which may signal confidence in the policy path.
The shift from attributing inflation to supply shocks to a more general statement, along with the emphasis on resilient domestic spending, could indicate the Committee sees demand-side pressures as more persistent, supporting further rate increases.
Markets might interpret the streamlined language as a clearer commitment to achieving the 2 percent goal, potentially reinforcing expectations of continued tightening.
Summary generated automatically from the statements. Not investment advice.
Projections
| 2026 | 2027 | 2028 | 2029 | Longer run | |
|---|---|---|---|---|---|
| Real GDP growth | 2.3 was 2.2 | 2.4 was 2.3 | 2.2 | 2.1 | 2.0 |
| Unemployment rate | 4.1 was 4.3 | 4.1 was 4.3 | 4.1 was 4.2 | 4.1 | 4.2 |
| PCE inflation | 3.7 was 3.6 | 2.3 | 2.1 was 2.0 | 2.0 | 2.0 |
| Core PCE inflation | 3.4 was 3.3 | 2.5 | 2.2 was 2.1 | 2.0 | |
| Federal funds rate | 4.1 was 3.8 | 4.1 was 3.6 | 3.9 was 3.4 | 3.6 | 3.2 was 3.1 |
Median projections of FOMC participants; previous: June.
Each dot is one participant's projection of the federal funds rate (%) at the end of each year and in the longer run.
September June median June median
Scroll the chart sideways for the later years.
Implementation Note
The settings that put the decision into effect: the interest rate paid on reserves, the FOMC's instructions to the New York Fed's trading desk, and the discount rate. Changes are marked the same way as in the statement.
- The Board of Governors of the Federal Reserve System voted unanimously to
maintainraise the interest rate paid on reserve balancesat 3.65to 3.90 percent, effectiveJuly 30,September 17, 2026. - As part of its policy decision, the Federal Open Market Committee voted to direct the Open Market Desk at the Federal Reserve Bank of New York, until instructed otherwise, to execute transactions in the System Open Market Account in accordance with the following domestic policy directive: "Effective
July 30,September 17, 2026, the Federal Open Market Committee directs the Desk to: - Undertake open market operations as necessary to maintain the federal funds rate in a target range of
3-1/23-3/4 to3‑3/44 percent. - Conduct standing overnight repurchase agreement operations at a rate of
3.754.0 percent. - Conduct standing overnight reverse repurchase agreement operations at an offering rate of
3.53.75 percent and with a per-counterparty limit of $160 billion per day. - When appropriate, increase the System Open Market Account holdings of securities through purchases of Treasury bills and, if needed, other Treasury securities with remaining maturities of 3 years or less to maintain an ample level of reserves.
- Roll over at auction all principal payments from the Federal Reserve's holdings of Treasury securities. Reinvest all principal payments from the Federal Reserve's holdings of agency securities into Treasury bills."
- In a related action, the Board of Governors of the Federal Reserve System voted unanimously to approve a 1/4 percentage point increase in the
establishment of theprimary credit rateatto 4.0 percent, effective September 17, 2026. In taking this action, theexisting levelBoard approved requests to establish that rate submitted by the Board of3.75 percent.Directors of the Federal Reserve Banks of Cleveland, Richmond, Atlanta, Chicago, Minneapolis, Kansas City, and Dallas.