2026-09-16: Federal Reserve Issues Federal Open Market Committee (FOMC) Statement

Sep 16, 2026 02:10 PM EDT, Wed

September 16, 2026

Federal Reserve issues FOMC statement For release at 2:00 p.m. EDT

Share The Federal Open Market Committee approved the following statement for release by a 12 – 0 vote:

The Committee decided to raise the target range for the federal funds rate by 1/4 percentage point to 3-3/4 to 4 percent, in support of the Federal Reserve’s dual mandate. The Committee is continuing its policy of maintaining ample reserves in the banking system.

Economic activity is expanding at a solid pace. While uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient. Productivity growth is strong, and capital investment is robust. Job gains have kept pace with the workforce, and the unemployment rate has changed little.

Inflation remains elevated. Today’s policy action will support a timelier return to the Committee’s 2 percent goal. The Committee will deliver price stability.

For media inquiries, please email media@frb.gov or call 202-452-2955.

Implementation Note issued September 16, 2026

Last Update: September 16, 2026

September 16, 2026

Implementation Note issued September 16, 2026 Decisions Regarding Monetary Policy Implementation

The Federal Reserve has made the following decisions to implement the monetary policy stance announced by the Federal Open Market Committee in its statement on September 16, 2026:

The Board of Governors of the Federal Reserve System voted unanimously to raise the interest rate paid on reserve balances to 3.90 percent, effective September 17, 2026.
As part of its policy decision, the Federal Open Market Committee voted to direct the Open Market Desk at the Federal Reserve Bank of New York, until instructed otherwise, to execute transactions in the System Open Market Account in accordance with the following domestic policy directive:

“Effective September 17, 2026, the Federal Open Market Committee directs the Desk to:
- Undertake open market operations as necessary to maintain the federal funds rate in a target range of 3-3/4 to 4 percent.
- Conduct standing overnight repurchase agreement operations at a rate of 4.0 percent.
- Conduct standing overnight reverse repurchase agreement operations at an offering rate of 3.75 percent and with a per-counterparty limit of $160 billion per day.
- When appropriate, increase the System Open Market Account holdings of securities through purchases of Treasury bills and, if needed, other Treasury securities with remaining maturities of 3 years or less to maintain an ample level of reserves.
- Roll over at auction all principal payments from the Federal Reserve’s holdings of Treasury securities. Reinvest all principal payments from the Federal Reserve’s holdings of agency securities into Treasury bills.”
In a related action, the Board of Governors of the Federal Reserve System voted unanimously to approve a 1/4 percentage point increase in the primary credit rate to 4.0 percent, effective September 17, 2026. In taking this action, the Board approved requests to establish that rate submitted by the Board of Directors of the Federal Reserve Banks of Cleveland, Richmond, Atlanta, Chicago, Minneapolis, Kansas City, and Dallas.

This information will be updated as appropriate to reflect decisions of the Federal Open Market Committee or the Board of Governors regarding details of the Federal Reserve ‘s operational tools and approach used to implement monetary policy.

More information regarding open market operations and reinvestments may be found on the Federal Reserve Bank of New York’s website.

Last Update: September 16, 2026

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2026 Committee Members

Kevin Warsh Board of Governors, Chairman
John C. Williams New York, Vice Chair
Michael S. Barr Board of Governors
Michelle W. Bowman Board of Governors
Lisa D. Cook Board of Governors
Beth M. Hammack Cleveland
Philip N. Jefferson Board of Governors
Neel Kashkari Minneapolis
Lorie K. Logan Dallas
Anna Paulson Philadelphia
Jerome H. Powell Board of Governors
Christopher J. Waller Board of Governors

Alternate Members

Thomas I. Barkin Richmond
Mary C. Daly San Francisco
Austan D. Goolsbee Chicago
Sushmita Shukla First Vice President, New York
Cheryl Venable Interim President, Atlanta

2026-09-16: Federal Reserve Issues Federal Open Market Committee (FOMC) Statement

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