Archive · 8 Oct 2026
Fed Officials Expect Another Rate Hike This Year
The Federal Reserve is the U.S. central bank, and it sets a key interest rate.
Its officials raised that rate in September to help slow inflation.
Meeting notes say most officials think they may need to raise it again this year.
They said prices were still rising too much and had not moved closer to the Fed’s 2% goal recently.
President Donald Trump wanted the Fed to lower rates instead.
Higher rates can make some borrowing more expensive.
Investors think the Fed will wait at its October meeting and may raise rates in December.
Officials have also said they can take time to see how the economy responds.
Minutes from the Fed’s September 15–16 meeting show most officials expect another rate increase this year.
Officials unanimously said inflation remained elevated and had made little recent progress toward the Fed’s 2% target.
The Fed raised its key interest rate by a quarter-point to about 3.9% at the meeting.
President Donald Trump had repeatedly called for rate cuts and criticized the rate-setting committee after the increase.
Investors expect rates to remain unchanged at the October 28–29 meeting and forecast a hike in December.
- Who
- Federal Reserve officials; President Donald Trump also criticized the rate increase.
- What
- Minutes indicated most officials expect another interest rate increase this year to combat inflation.
- When
- The minutes were released Wednesday, October 7, following the September 15–16 meeting.
- Where
- The United States.
- Why
- Officials said inflation remained elevated and had made little recent progress toward the Fed’s 2% target.
Support for rate cuts
Support for another rate increase
Interest-rate direction
Support for rate cuts
President Donald Trump repeatedly called for the Fed to cut rates and criticized its rate-setting committee after the increase.
Support for another rate increase
Most Fed officials expected another increase this year, citing persistently elevated inflation and limited recent progress toward the 2% target.
- Rate decision
- A quarter-point increase at the September 15–16 meeting
- Key interest rate
- About 3.9% after the increase
- Inflation target
- 2%
- Next Fed meeting
- October 28–29
- Investor expectations
- Rates unchanged in October, with an increase forecast for December
- Longer-term borrowing costs
- Mortgage and other longer-term rates had risen for several reasons; the Fed’s hike likely played only a limited role.