Federal Reserve Widely Expected to Hike Interest Rates for First Time in Three Years

Financial markets are anticipating a 90% probability that the Federal Reserve will raise its benchmark interest rate by 0.25 percentage points on Wednesday, September 16, 2026. This would mark the U.S. central bank's first rate increase since mid-2023, as it aims to combat persistently high inflation. The Consumer Price Index rose at an annual pace of 3.4% in August, contributing to the expectation of tighter monetary policy.