# Fed raises rates for first time in three years

> The Federal Reserve hiked interest rates by a quarter point, signaling a shift in monetary policy as officials battle inflation.
- Title: Fed raises rates for first time in three years | Shortify
- Summary: The Federal Reserve hiked interest rates by a quarter point, signaling a shift in monetary policy as officials battle inflation. The Fed's first rate hike in…
- Keywords: federal reserve, interest rates, rate hike, inflation, kevin warsh, monetary policy, trump administration, federal open market committee, economic data, business, technology, Fed
- Source: Business Insider — https://businessinsider.com/fed-hiked-interest-rates-what-economic-experts-say-comes-next-2026-9
- Author: Katherine Li
- Published: 2026-09-17T05:56:53.179+00:00
- Read time: 1 min
- Topics: federal reserve, interest rates, rate hike, inflation, kevin warsh, monetary policy, trump administration, federal open market committee, economic data, business, technology
## Fed raises rates for first time
The Federal Reserve hiked interest rates by a quarter point on Wednesday, marking its first increase in three years as officials work to curb inflation.
## Prices won't drop immediately
Fed Chair Kevin Warsh said the rate hike won't immediately bring down individual prices, meaning Americans will continue feeling pressure at grocery stores and gas pumps.
## No forward guidance on future hikes
Warsh declined to signal whether more rate hikes are coming, saying future decisions will depend on incoming economic data rather than outside pressures.
## Data will drive next moves
The Federal Open Market Committee will base future rate decisions on economic data alone, rejecting the idea of providing forward guidance to markets.
## Markets await expert analysis
Economists and finance experts are weighing in on what the rate hike means and where interest rates could head in the coming months.
## Key takeaway

The Fed's first rate hike in three years won't immediately lower prices, so Americans will continue feeling pressure at the pump and grocery store.