The Federal Reserve raised its benchmark federal funds target range by 25 basis points to 3.75%-4.00% at its September 2026 meeting, its first increase since July 2023, as inflation remained above the 2% target and officials indicated that another hike could be warranted. The benchmark 30-year fixed mortgage rate subsequently rose to 7.03% from 6.95%, its fifth consecutive weekly increase and highest level since the week ending Jan. 16, 2025. The Personal Consumption Expenditures Price Index rose 3.7% year over year in July, while tariff aftershocks and higher fuel costs linked to the U.S.-Israeli war with Iran added to inflation pressure. Futures markets anticipated more tightening than Fed projections, which pointed to one additional increase in 2026, and the Federal Open Market Committee was scheduled to meet again in late October.