Fed Holds Interest Rate Steady at 4.25% to 4.75% for Fifth Time in a Month
The Federal Reserve announced it kept the benchmark rate unchanged, citing persistent inflation concerns. The decision follows four prior meetings where officials maintained this same level.
The U.S. Federal Reserve did not change its federal funds target rate at its September 8, 2026, meeting. Officials decided to keep the range set at 4.25% and 4.75%, a position they have occupied since July 31, 2024. The central bank voted for a fifth time in a single month without raising or cutting rates. President of the Federal Reserve Bank of New York reported that inflation remains sticky above their 2 percent goal despite recent declines. Members noted that labor market conditions continue to support wage growth while price increases persist across many sectors. Chairman Powell stated that data will guide future action, noting no change in stance given current economic indicators. The decision reflects a cautious approach as officials assess whether cooling measures are sufficient before tightening further.
