The Federal Reserve raised its benchmark interest rate by a quarter percentage point on Wednesday, its first increase in more than three years, according to reporting by The Gateway Pundit. The Federal Open Market Committee voted 12-0 to lift the rate to a target range of 3.75%–4%, with the top of that range cited as 3.75% in the outlet’s initial report.
The decision lands just weeks before the midterm elections, putting the central bank’s inflation fight squarely in the middle of an already charged political season.
A unanimous vote, and a signal of more to come
The quarter-point move, equal to 25 basis points, was widely expected on Wall Street. The Gateway Pundit reported that markets had priced in a better than 90% chance the FOMC would approve the increase, though there had been speculation about possible dissents. In the end, the vote was unanimous.
The Fed framed the hike as part of an effort to combat inflation that the outlet attributed to spiraling oil prices and other factors. In its brief post-meeting statement, the committee said inflation remains elevated and that the policy action would support a more timely return to its 2% goal. The statement added that the committee will deliver price stability.
The central bank also indicated another increase could be coming, according to the report — a signal that the tightening cycle may not be over.
Trump has pushed hard for cuts
The move puts the Fed at odds with President Trump, who has repeatedly demanded interest rate cuts and threatened to halt trade if the central bank did not reduce key rates, The Gateway Pundit reported.
Those demands went unmet on Wednesday. Whether the president responds publicly to the decision — and how sharply — is an open question heading into the midterms, where the cost of borrowing and the price of everyday goods are already live political issues.
Warsh takes the podium
Fed Chairman Kevin Warsh was scheduled to hold a live press conference at 2:30 p.m. ET following the decision. His remarks will be closely watched for any hint about the pace of further increases and how the committee weighs the political calendar against its inflation target.
For borrowers, the immediate effect runs through the overnight funds rate, which now sits in a range not seen in roughly three years. Credit card rates, auto loans and other short-term borrowing costs tend to track that benchmark, while mortgage rates and longer-term yields respond to expectations about where policy goes next.
The Fed’s next scheduled meeting will determine whether Wednesday’s hike was a standalone move or the opening step in a longer campaign. The committee’s own language, combined with its indication of another increase to come, suggests the latter — though the path will depend on whether inflation cools in the months ahead.
Source: www.thegatewaypundit.com — https://www.thegatewaypundit.com/2026/09/breaking-federal-reserve-raises-interest-rates-25-basis/