Fed raises policy rate 25bp to 3.75%-4.00% and signals further hikes

On September 16, 2026 the Federal Reserve raised its policy stance by 25 basis points to a 3.75%-4.00% federal funds target range and published a more hawkish dot-plot signaling at least one more hike this year, shifting the US policy path toward higher-for-longer rates.

Higher US policy rates and a hawkish Fed outlook tend to lift US Treasury yields and USD funding costs, which mechanically raise the duration-related financing burden on long-dated African USD Eurobonds and increase external debt service costs for FX-constrained importers. Oil exporters with dollar revenues should be relatively less exposed to tighter external financing conditions. This is conditional on Treasury yields moving higher and on issuer-specific spread dynamics.

Next FOMC meeting Oct 27-28, 2026 and upcoming US inflation and jobs prints (e.g., PCE on Sept 30, jobs on Oct 2) that could determine further hikes.