Federal Reserve raises federal funds target range 25bp to 3.75–4.00% (16 Sep 2026)
On September 16, 2026 the Federal Open Market Committee voted to raise the federal funds target range by 25 basis points to 3.75%–4.00%. The Board’s Implementation Note said the Desk will maintain operations to keep the federal funds rate in that range and raised the interest on reserve balances to 3.90% effective September 17, 2026.
The desk brief
On September 16, 2026 the Federal Open Market Committee voted to raise the federal funds target range by 25 basis points to 3.75%–4.00%. The Board’s Implementation Note said the Desk will maintain operations to keep the federal funds rate in that range and raised the interest on reserve balances to 3.90% effective September 17, 2026.
A 25bp Fed hike tightens US policy and lifts short-term US dollar yields and cash rates, raising external dollar borrowing costs and rollover premia for African issuers that access international capital or have floating-rate external debt. The impact depends on local FX buffers, reserve levels, and near-term external amortisation schedules; it does not by itself prove spread widening or actual repricing of specific African bonds.
Next FOMC meeting and projections release scheduled October 27–28, 2026.
Sources & verification
Developing storyFurther independent confirmation is required.
- Federal Reserve issues FOMC statementfederalreserve.gov (opens in a new tab)
- Implementation Note issued September 16, 2026federalreserve.gov (opens in a new tab)
Public references supporting this brief.