The US Federal Reserve unanimously lifted its key overnight borrowing cost to a range of 3.75%-4.00% on September 16. Chairman Kevin Warsh stated the move is intended to support a timelier return to the central bank's 2% inflation goal, marking the first increase since July 2023. The decision came after President Donald Trump called for cuts to 1% or lower, although the White House later described the hike as unfortunate.

Projections from 18 policymakers indicate further tightening, with 16 officials anticipating at least one more rate increase by the end of 2026. Wall Street shares ended lower following the announcement, which Warsh linked to geopolitical instability and an energy shock. The Chairman described the hike as a responsible decision and reinforced the independence of monetary policy from political influence.