Fed to Raise Interest Rates for First Time Since 2023, Impacting Borrowers and Savers

Fed to hike rates for first time since 2023. Learn how this affects loans, savings, and the economy.

September 15, 2026 One Min Read

POLICY WIRE — Washington, United States — The Federal Reserve is set to increase its benchmark interest rate on Wednesday, marking the first rise in over three years as it seeks to address persistent inflation driven by high energy costs.

Economists anticipate a 0.25 percentage-point increase at the central bank’s Sept. 16 meeting, despite President Trump’s calls for lower borrowing costs. Inflation remains above the Fed’s 2% target, with the Consumer Price Index rising 3.4% annually in August.

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The rate hike could lead to higher costs for credit cards and other loans, though a single increase may not drastically affect monthly payments. Meanwhile, savers could see better returns on deposits. The Fed will also release its quarterly economic projections and hold a press conference with Chairman Kevin Warsh following the decision.

Reporting by Policy-Wire (PW)

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