Fed Signals Potential Future Rate Hikes Amid Ongoing Economic Work

WHO:

Yahoo Finance - Kansas City Federal Reserve President Jeff Schmid stated, "The Fed has work to do on inflation, and this week's action was a step in that direction."

NPR - Fed Chair Kevin Warsh stated that inflation is too high and has been for too long.

Yahoo Finance - Kansas City Federal Reserve President Jeff Schmid supported the Fed's decision to raise interest rates.

WHAT:

NPR - The Federal Reserve's rate hike is the first of the year, raising rates by a quarter percentage point to a range of 3.75% to 4%.

Yahoo Finance - The median of interest rate projections from 18 of the 19 Fed members indicated that 12 projected one more rate hike this year, and four projected two more hikes.

Yahoo Finance - The average rate for a 30-year fixed-rate mortgage increased to 6.95%, almost two-tenths of a percent higher than a week earlier.

Yahoo Finance - The median of interest rate projections from 18 of the 19 Fed members indicated that 12 projected one more rate hike this year, and four projected two more hikes.

Yahoo Finance - The Fed's decision to raise rates was the first since July 2023.

NPR - The Federal Reserve raised interest rates by a quarter percentage point.

Yahoo Finance - The Federal Open Market Committee voted unanimously to raise its benchmark interest rate to the range of 3.75% to 4% from 3.5% to 3.75%.

Yahoo Finance - This was the first rate hike since July 2023.

NPR - The average rate for a 30-year fixed-rate mortgage increased to 6.95%.

Yahoo Finance - The median of interest rate projections from 18 of the 19 Fed members indicated expectations for a second rate hike this year.

WHERE:

Yahoo Finance - Schmid made his comments during a speech in Vail, Colorado.

WHEN:

Yahoo Finance - The Fed's rate hike occurred on a Wednesday.

Yahoo Finance - The Fed's decision was made during a meeting held in August 2026.

WHY:

Yahoo Finance - Schmid noted that inflation has run above the central bank's 2% target for over five years, with recent price readings suggesting a pace above 3%.

Yahoo Finance - Schmid noted that inflation has jumped this year due to higher oil and overall energy prices amid the conflict with Iran.

NPR - The Fed raised rates to slow down accelerating inflation, which has been above the 2% target for five years.

Yahoo Finance - Schmid noted that inflation has run above the central bank's 2% target for over five years, with recent price readings suggesting a pace above 3%.

Yahoo Finance - Higher oil prices have been a significant driver of elevated inflation.

HOW:

Yahoo Finance - Fed Chair Kevin Warsh stated, "We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed."

NPR - The Fed raises interest rates to influence borrowing costs across the economy, aiming to cool down prices.

Yahoo Finance - The Fed's decision to raise rates was a step towards addressing inflation, as indicated by Schmid.

(UPDATED September 19, 2026 21:56 UTC)

The Federal Reserve has announced its first rate hike of the year, increasing rates by a quarter percentage point to a range of 3.75% to 4%. Projections from 18 of the 19 Fed members indicate that 12 expect one more rate hike this year, while four anticipate two additional hikes. Meanwhile, the average rate for a 30-year fixed-rate mortgage has climbed to 6.95%, reflecting ongoing inflation concerns that have persisted above the central bank's 2% target for over five years.

(UPDATED September 19, 2026 16:57 UTC)

Kansas City Federal Reserve President Jeff Schmid emphasized that the Fed still has work to do on inflation, noting that this week's interest rate hike was a step in that direction. The median projections from 18 of the 19 Fed members show that 12 anticipate one more rate hike this year, while four expect two additional hikes, marking the first increase since July 2023. Schmid pointed out that rising inflation this year has been driven by higher oil and energy prices, a situation exacerbated by ongoing conflict with Iran, as Fed Chair Kevin Warsh stressed the need for confidence in achieving their inflation objectives.

(UPDATED September 19, 2026 16:01 UTC)

The Federal Reserve has raised interest rates by a quarter percentage point, marking the first hike since July 2023, with the benchmark rate now set between 3.75% and 4%. Kansas City Federal Reserve President Jeff Schmid, speaking in Vail, Colorado, emphasized that inflation has remained above the central bank's 2% target for over five years, driven significantly by higher oil prices. As a result of this decision, the average rate for a 30-year fixed-rate mortgage has increased to 6.95%, reflecting the Fed's ongoing efforts to influence borrowing costs and cool down prices across the economy.