The Federal Reserve raised its benchmark rate by 25 basis points on Sept. 16, 2026, to 3.75%-4.00%, its first increase since July 2023 and the first of Chair Kevin Warsh’s tenure. The move reflected persistent inflation pressures, with the consumer price index up 3.4% in August, above the Fed’s 2% target. Warsh said the central bank would restore price stability, while projections pointed to a median 4.1% policy rate by year-end. President Donald Trump renewed his demand for rates of 1% or lower and criticized the Fed Board. Treasury yields declined after the decision as inflation compensation eased, but the rate increase strengthened the dollar against the Korean won amid wider global tightening linked to higher oil prices during the U.S.-Iran war.