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Market participants were pricing in a 25 basis point increase ahead of the announcement.
The two-day Fed meeting concluded on September 16, 2026, with the decision scheduled for 11:30 PM Indian Standard Time.
Some reporting said Chair Kevin Warsh would speak after the decision, with investors watching for guidance.
Other coverage said the Fed raised rates by 25 basis points to a 3.75 to 4 percent range.
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That reporting said the move was the first rate hike in over three years and came amid persistent inflation.
One report said the Fed's target range had held at 3.50% to 3.75% since July before the decision.
Sources also said market expectations were shaped by CME FedWatch data, Reuters surveys, and analyst commentary.