Federal Reserve Rate Increase and Monetary Policy Review

Flashcards covering key economic terms, figures, and facts from the September 2026 Federal Reserve rate decision article.

Benchmark Federal-Funds Rate Range (September 2026)

The official policy interest rate range raised by a quarter point by the Federal Reserve to between $3.75\%$ and $4\%$ in a unanimous vote.

Kevin Warsh

Federal Reserve Chairman who took office in May and vowed to end a six-year overshoot of the Fed's $2\%$ inflation target, leading the September 2026 rate hike.

Federal-Funds Rate Target Chart

A historical chart tracking the midpoint of the Federal Reserve's target rate range from 2000 to 2026, including periods of recession and rate adjustments.

Federal-Funds Rate Target Projections Chart

A dot plot chart illustrating individual Federal Reserve officials' rate target projections for year-end 2026, 2027, and 2028.

William Dudley

Former New York Fed president who noted that the energy price shock from the intensified war in Iran is expanding, with diesel behaving as though crude oil were at $\$200$ a barrel.

10-Year Treasury Yield (September 2026)

A long-term benchmark yield that reached its highest level in nearly two decades, recently trading above $5\%$.

30-Year Mortgage Rate (September 2026)

A consumer borrowing benchmark that climbed to nearly $7\%$ according to the Mortgage Bankers Association, up from $6\%$ in February.

William English

Former senior Fed official now at Yale who stated that having high inflation and very low real interest rates for a sustained period is a bad idea.

James Egelhof

Chief U.S. economist at BNP Paribas who characterized the rise in long-term Treasury yields during Warsh's July press conference as an unrecovered vote on monetary policy credibility.

Real Policy Rate

The interest-rate setting adjusted for inflation, which remained low after prior rate cuts due to persistent price growth.

Nick Timiraos

Chief economics correspondent for The Wall Street Journal based in Washington who covers the Federal Reserve and major developments in U.S. economic policy.