The Sen Times

Federal Reserve hikes key rate for 1st time in 3 years, defying Trump demands for a cut

WASHINGTON. September 17, 2026 (AP) The Federal Reserve raised its benchmark interest rate Wednesday for the first time since 2023 in an effort to quell stubbornly high inflation, and the central bank signaled another rate hike could occur later this year. The quarter-point increase lifts the Feds key rate to about 3.9% and, over time, could result in higher borrowing costs for mortgages, auto loans and credit cards. In a set of quarterly projections, the Fed also signaled its rate-setting committee could raise it a second time to 4.1%. The move comes as Americans are already struggling with high