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The Federal Reserve announced earlier Wednesday it would raise interest rates by 0.25 percentage points, which pushes rates to 3.75 percent to 4 percent after the two-day September meeting. It was a unanimous 12-0 vote for the monetary policy rate to increase.
This was the first increase in rates since 2023. Federal Reserve Chair Kevin Warsh began his press conference noting economic activity is expanding at a solid pace. Warsh also said domestic spending has been resilient, job gains have kept pace, and the unemployment rate has changed little, despite geopolitical developments.
Inflation still remains above the committee’s 2 percent goal.
“Today’s policy action will support a timelier return to the Committee’s 2 percent goal,” Warsh said. “This Committee will deliver price stability.”
Moving Help® will explain why the Federal Reserve came to this decision, and what it means for homebuyers who are looking to buy or sell a house in the future.
Who Voted for and Against This Policy Rate?
The Federal Open Market Committee’s vote was 12-0, making it a unanimous decision to increase the monetary policy rate.
During the July meeting, most members on the committee agreed inflation remained too high, but they thought the wiser course then would be to weigh new information in the intermeeting period, Warsh said.
The FOMC decided the standard has not been satisfied, he said.
Warsh mentioned getting back to the 2 percent goal in a timely manner multiple times throughout the press conference.
“The Committee’s unanimous vote shows our resolve to achieve price stability on a timelier basis,” Warsh said. “We aim to ensure that credit and financial conditions are consistent over time with our mandate, that relative price changes in some sectors of the economy do not broaden.”
| Voting Member Name | How Did They Vote? |
|---|---|
| Kevin Warsh, chair | Yes |
| John C. Williams, vice chair | Yes |
| Michael S. Barr | Yes |
| Michelle W. Bowman | Yes |
| Lisa D. Cook | Yes |
| Beth M. Hammack | Yes |
| Philip N. Jefferson | Yes |
| Neel Kashkari | Yes |
| Lorie K. Logan | Yes |
| Anna Paulson | Yes |
| Jerome H. Powell | Yes |
| Christopher J. Waller | Yes |
Why Did the Fed Increase Rates?
“The plain fact is that inflation is too high and has been for too long,” Warsh said.
The trends weren’t where the Fed wanted them to be at this point. The Fed looked more at trends than data points, Warsh said. The committee made today’s decision based on its assessment of the situation.
“The decision we made today was a sober decision, serious decision, responsible decision, one that we have been preparing for,” he said.
The focus is getting back to stable prices for the American people and back to the committee’s 2 percent goal, which has been Warsh’s main focus since becoming chairman. Today’s announcement is a way to get back to it on a “timelier basis,” he said.
Summary of Economic Projections
The Fed also released its Summary of Economic Projections. Warsh — as mentioned in the June meeting — didn’t provide his own projection, but he gave a summary of his colleagues’ projections:
- Real GDP rises at 2.3 percent in 2026 and 2.4 percent in 2027
- PCE inflation runs at 3.7 percent in 2026 and 3.2 percent in 2027
- Unemployment rate holds steady at 4.1 percent in 2026 and 2027
- The total Federal Funds Rate is to be at 4.1 percent in 2026 and 2027
What Does the Future Hold?
The Fed is trying to work on taming the inflation rate, which has been well above the 2 percent goal for more than five years. Warsh’s largest promise is taming inflation and bringing it back to the 2 percent standard.
Most experts believe another rate increase will occur at least one more time in 2026. With that said, geopolitical situations can change the central bank’s viewpoint.
The Federal Reserve’s dual mandate is maximum employment and stable prices. The Fed believes “the unemployment rate is basically running consistent with full employment,” Warsh said.
When a reporter asked whether, after hiking rates to lower inflation, the Fed would unintentionally push the job market below its potential, he disagreed with that assessment.
Warsh believes both mandates work together. Price stability and full employment can work together.
“I don’t believe that we need to do harm on the Labor Markets to achieve our objective,” he said.
What Does This Mean for Home Mortgage Rates?
Housing mortgage rates will likely increase in the coming days and weeks with the Federal Reserve increasing rates by 0.25 percentage points.
From Jan. 2, 2025, to July 23, 2026, a 30-year mortgage rate has hovered anywhere between 5.98 percent and 7.04 percent, according to Freddie Mac. The rates have ranged from 6.43 percent to 6.76 percent since the last Fed meeting in July.
During the same time frame, a 15-year mortgage rate has hovered between 5.35 percent and 6.27 percent, according to Freddie Mac. The rates have ranged from 5.79 percent to 6.09 percent since the last Fed meeting in July.
Both 15- and 30-year interest rates saw a trend of rates increasing since the beginning of May and continue to slightly climb higher in September.
What Does This Mean for People Looking to Move?
Housing mortgage rates are still higher than they were pre-pandemic.
Housing mortgage rates for a 30-year loan and a 15-year loan are still lower than the peak 7.79 percent 30-year mortgage rate and the 7.03 percent 15-year mortgage rate in late October 2023.
Despite higher housing mortgage rates and what will probably be even higher mortgage rates because of the Fed increase, the U.S. real estate market is still a buyer’s market, according to Redfin.
“With sellers piling into the market and demand falling flat, today’s house hunters can afford to be choosy,” said Asad Khan, a senior economist at Redfin, according to a Redfin article.
Other Federal Reserve Press Conference News
The goal for today was to remove a dose of accommodation, Warsh said. A hike today in rates will help reach the 2 percent goal as well.
The Federal Reserve will continue to stay in its lane for independence. Part of the independence is focusing on its job and not worrying about what the markets, released data points, or other factors may show now or in the future.
Warsh continuously reiterated how strong the U.S. economy and consumer spending has been despite inflation and other underlying factors at the moment.
President Donald Trump has wanted the Fed to cut rates since Powell was chairman. A couple of weeks ago, Trump threatened to cut off trade to certain countries unless the rate is lowered. Warsh received other questions about Trump and the Fed rates.
Warsh either refused to answer the question directly or chose to answer a different question that was asked by the same reporter. Warsh didn’t provide any insight on discussions with Trump.
White House Senior Deputy Press Secretary Kush Desai called the Federal Reserve’s decision unfortunate.
“All higher interest rates are going to do right now is stymie the significant economic progress that the United States has made under this president, under this administration,” he said.
At the time of publication, Trump hadn’t released his own statement yet on the central bank’s decision.
Additionally, this was the fastest press conference in 2026, and it certainly was the fastest press conference Warsh has held while being chairman. Unlike previous press conferences, Warsh didn’t answer multiple questions or respond to follow-up questions in September’s press conference.
When Is the Next Federal Reserve Meeting?
The next Federal Reserve meeting is scheduled for Wednesday, Oct. 28, 2026.
You also can read previous recaps of the January, March, April, June, and July meetings.
