12 hrs ago
US Federal Reserve weighs first rate hike since 2023
The Federal Reserve is meeting to decide whether to change interest rates.
The meeting started on September 15 and ends on September 16, 2026.
The decision is expected at 18:00 GMT, which is 11:30 p.m.
in India.
Investors think the central bank will raise rates by 0.25 percentage points.
If that happens, it would be the first increase since 2023.
The Federal Reserve has kept rates unchanged since January 2026.
Officials have been watching inflation, energy-price shocks, and the effects of tariffs.
The CME FedWatch tool estimated that the chance of a rate increase was above 92 percent.
The two-day Federal Open Market Committee meeting began on September 15 and concludes on September 16, 2026.
The interest-rate decision is scheduled for 18:00 GMT, or 11:30 p.m. Indian Standard Time.
Markets expect a 25-basis-point increase, which would be the first Federal Reserve hike since 2023.
The Federal Reserve has held rates steady since January 2026 while assessing energy-price shocks and tariff effects.
The CME FedWatch tool, cited by AFP, put the probability of a hike above 92%.
- Who
- The Federal Open Market Committee and Federal Reserve Chair Kevin Warsh.
- What
- A decision on whether to raise United States interest rates, with markets expecting a 25-basis-point increase.
- Where
- The meeting is being held by the United States Federal Reserve; no physical location is specified.
- When
- The meeting runs from September 15 to September 16, 2026; the decision is scheduled for 18:00 GMT, or 11:30 p.m. IST.
- Why
- The committee is assessing persistent inflation, energy-price shocks, and the effects of tariffs on prices.
Arguments for waiting
Arguments for raising rates
Timing of the decision
Arguments for waiting
The Federal Reserve has held rates steady to assess energy-price shocks and allow tariff effects to move through the economy.
Arguments for raising rates
Persistent inflation concerns and a previous dissent by three voting members support an immediate increase.
Market expectations
Arguments for waiting
The central bank may continue waiting to gauge the economy's response to recent price pressures.
Arguments for raising rates
Investors have assigned more than a 92% probability to a hike and expect a 25-basis-point increase.
Key facts
- Meeting dates
- September 15-16, 2026
- Decision time
- 18:00 GMT, or 11:30 p.m. Indian Standard Time
- Expected move
- A 25-basis-point interest-rate increase
- Current policy
- Rates have been held steady since January 2026
- Expected probability
- More than 92%, according to the CME FedWatch tool cited by AFP
- Previous dissent
- Three voting members reportedly favored an immediate hike, while nine supported waiting
- Historical significance
- A hike would be the first Federal Reserve increase since 2023
Sources
Related news
Markets Brace for Expected Fed Rate Hike Amid Volatility
Why Tonight’s Fed Decision Could Reshape U.S. Monetary Policy
July Fed Minutes May Shape September Rate Decision
US Fed Rate Hike Puts Indian Markets, Rupee Under Watch
Warsh Jackson Hole Speech Raises Rate-Hike Bets, Pressuring Indian Assets
Warsh Signals Possible Rate Hikes as Inflation Stays Above Target
Hot Inflation and $100 Oil Make Fed Hike Likely
NSE IPO to Become India’s Second-Biggest, World’s Seventh-Most-Valued Exchange
Middle East Tensions Push Oil Toward $100, Weighing US Stocks
Strong Jobs Data Puts Fed September Rate Decision In Focus
