WASHINGTON, Sept 16 — Federal Reserve raised benchmark rate 25bp to 3.75%-4.00% range, unanimous under Chair Kevin Warsh. First hike since July 2023.
New projections show policy rate in 4.00%-4.25% range by end-2026, unchanged at end-2027. Warsh cited tariffs, Iran-war energy shock, and AI capital spending as inflation drivers.
Major banks raised prime rates to 7%. President Trump called for cuts; Warsh declined political commentary at press conference.