Fed Unanimously Raises Rates by a Quarter Point
The Federal Reserve unanimously raised its benchmark rate by a quarter point to a 3.75%–4% range and signaled one more hike this year. The move keeps inflation policy restrictive while putting Chairman Kevin Warsh’s relationship with President Donald Trump under pressure.
Bloomberg Television reported that the Federal Reserve voted unanimously to lift interest rates by a quarter percentage point, taking the benchmark federal funds rate to a 3.75% to 4% target range. The central bank also penciled in an additional increase later this year, framing the decision as an effort to contain inflation.
The decision tests the Fed’s policy stance under Chairman Kevin Warsh and creates a direct political tension with President Donald Trump, according to Bloomberg’s report. The unanimous vote indicates that the committee presented a united front on this decision, while the projected further hike points to continued concern about inflation rather than an imminent shift toward easier policy.
The immediate mechanism runs through borrowing costs and financial conditions: a higher policy rate raises the baseline cost of credit and keeps pressure on interest-sensitive economic activity.
The next read will come from the Fed’s subsequent communications and economic data on inflation, employment and growth. The key unresolved issue is whether incoming data support the additional hike or instead force the committee to reconsider the path it has signaled.
The Federal Reserve unanimously raised its benchmark rate by a quarter point to a 3.75%–4% range.
The immediate implication is tighter financial conditions and a higher hurdle for rate-sensitive assets, while the unanimous vote gives the additional-hike signal policy credibility.
A softer inflation or employment reading, or a change in the Fed’s projected path, could quickly unwind the higher-for-longer signal.
CoverageSource: Bloomberg Television · Published here WED, SEP 16 · 2:14 PM ET · 35 reports · 14 publishers in this record · latest listed: Bloomberg Television · FRI, SEP 18 · 9:04 AM ET (reaction)How this is decided →
File photo · The Federal Reserve’s Eccles Building, Washington · Mar 2011 · Federal Reserve · Public domain · Source & license- NYT Business — Fed Signals Another Rate Increase Could Be Coming
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- Financial Times — Fed raises rates for first time since 2023 in unanimous decision
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- NBC News — Fed raises interest rates for first time since 2023, defying Trump as inflation mounts
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- WSJ — Fed Raises Rates for First Time in Three Years
- AP News — Fed rate hike likely means more expensive credit cards and mortgages, but savers may rejoice
- CNBC — Here are five key takeaways from Wednesday's Fed rate hike
- The Washington Post — Fed raises interest rates by quarter point to tackle inflation
- CoinDesk — Fed raises rates by 25 basis points in first hike since July 2023
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- BBC Business — US interest rates raised for first time in three years
- Bloomberg Television — Trump Calls Fed Rate Hike 'Unfortunate,' Demands a Cut
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- NYT Business — Fed Chairman Warsh Escapes Trump’s Ire Over Interest Rate Increase
- Yahoo Finance — Fed meeting live updates: Fed hikes interest rates by 25 basis points as Warsh vows 'timelier return' to 2% inflation
- The Workshop — Fed Warsh Delivers First Hike in Three Years
- Bloomberg Television — Trump Reacts to Fed Rate Hike to Curb Inflation
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The Fed’s unanimous vote and projected additional hike could reinforce confidence that inflation will be contained, supporting the dollar and reducing the risk of a renewed inflation shock.
The higher policy rate and prospect of another hike tighten financial conditions and can pressure rate-sensitive assets, while the report flags political tension around Chairman Kevin Warsh.
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