# Fed raises rates for first time since 2023

> The central bank hiked its benchmark rate a quarter point to combat inflation still running above its 2% target.
- Title: Fed raises rates for first time since 2023 · Dallas Express
- Summary: The central bank hiked its benchmark rate a quarter point to combat inflation still running above its 2% target. The Federal Reserve raised interest rates…
- Keywords: federal reserve, interest rates, inflation, federal open market committee, monetary policy, borrowing costs, mortgage rates, savings accounts, consumer prices, economic policy, news, politics
- Source: Dallas Express — https://dallasexpress.com/national/federal-reserve-raises-interest-rates-for-first-time-since-2023
- Author: Dallas Express
- Published: 2026-09-16T21:13:42+00:00
- Read time: 1 min
- Topics: federal reserve, interest rates, inflation, federal open market committee, monetary policy, borrowing costs, mortgage rates, savings accounts, consumer prices, economic policy, news, politics
## Fed hikes rates after three years
The Federal Reserve raised its benchmark rate by a quarter point to 3.75% to 4%. It's the first increase since 2023.
## Inflation remains stubbornly high
Consumer prices rose 3.4% in August compared to a year earlier. The Fed wants to bring inflation back to its 2% target.
## Borrowing will get more expensive
Higher rates make credit cards and auto loans costlier. The average 30-year mortgage rate recently hit 6.76%.
## Fixed mortgages won't change
Homeowners with existing fixed-rate mortgages won't see their monthly payments rise because of this decision.
## Savers could see better returns
Banks may raise rates on savings accounts and CDs. The impact grows if rates stay elevated for a long time.
## Another hike may be coming
Fed projections suggest another quarter-point increase could happen this year, bringing rates near 4.1%.
## Key takeaway

The Federal Reserve raised interest rates for the first time in three years to combat inflation, making borrowing more expensive but potentially benefiting savers.