Fed raises federal funds target range 25 basis points to 3.75%-4.00%

The Federal Open Market Committee raised its federal funds target range by a quarter point to 3-3/4 to 4 percent on September 16, 2026, in a 12-0 vote. The statement said inflation remains elevated and that the action supports a timelier return to the 2% goal, while job gains have kept pace with the workforce. For Bank of America, a higher policy rate supports net interest income on its large deposit base, but it can also slow borrowing demand, the trade-off Moynihan flagged two days earlier.

• Target range raised 25 basis points to 3.75%-4.00%
• Vote 12-0
• Statement: inflation remains elevated; unemployment rate has changed little
• Action framed as supporting a timelier return to the 2% inflation goal