Federal Reserve Raises Interest Rates for First Time Since July 2023
The Federal Open Market Committee (FOMC) voted unanimously on September 16, 2026, to raise the benchmark interest rate by 25 basis points. This marks the first increase since July 2023 and reverses earlier expectations of a rate-cutting path in 2026 due to persistent inflation above target levels. Fed Chairman Kevin Warsh emphasized that price stability remains the central focus as inflation has remained elevated for over five years. The decision comes amid rising Treasury yields, with 10-year bonds surpassing 5%, which is increasing borrowing costs and affecting capital availability in sectors like commercial real estate. Analysts warn of higher transactional costs and reduced investment activity across markets and industries. The Fed stated the economy remains robust despite uncertainties but stressed that inflation must be addressed to meet its long-term goals. President Donald Trump criticized the rate hike, calling for lower rates due to strong U.S. creditworthiness. He has previously threatened to remove Warsh's predecessor from office over similar policy decisions.
Topics: commercial real estate Federal Reserve inflation interest rates Treasury yields