Fed raises fed funds target by 25bp on Sept 16, 2026; dot plot signals another hike likely

On September 16, 2026 the Federal Open Market Committee raised the target range for the federal funds rate by 25 basis points to 3.75–4.00% and released updated projections (the dot plot) showing a strong majority of officials expect at least one more rate increase later in 2026.

A Fed hike and a dot-plot pointing to further tightening typically lifts US short‑term yields and the dollar, which can tighten cross‑border dollar funding and raise the local currency cost of servicing dollar liabilities for African borrowers. Sovereigns and corporates with near‑term external rollover needs (e.g., Ghana) would face higher refinancing costs and potential FX reserve pressure if US rates and dollar funding conditions remain firmer.

FOMC will meet again on Oct 27–28 and Dec 8–9, 2026 (next opportunities for further policy moves).