Sep 16, 2026

Fed Hikes Rates to 3.75%-4% as Bitcoin Holds Near $76K

The Federal Reserve raised interest rates by a quarter point on Wednesday, its first increase since 2023, moving the federal funds rate to a target range of 3.75% to 4% from 3.50% to 3.75%, according to Yahoo Finance. The decision was backed by all 12 members of the Federal Open Market Committee.

Bitcoin held roughly flat in the minutes surrounding the announcement, trading between $75,000 and $75,800, before climbing to $76,000 shortly afterward. The wider crypto market declined about 2.18% over the day.

The increase matched market expectations almost exactly. Traders had assigned a 93% probability to a hike before the decision, based on CME's FedWatch tool, compared with less than 50% a month earlier.

In its statement, the Committee described economic activity as expanding at a solid pace and said job gains had kept pace with the workforce, while noting that inflation remains elevated. It said the move would support a timelier return to its 2% target.

The outcome aligned with a Wall Street Journal survey published this week, which found that nearly every major bank anticipated a hike. Most surveyed banks, including Barclays, Citigroup, JPMorgan, Morgan Stanley and UBS, projected 50 basis points of total tightening by year-end, while Bank of America, Deutsche Bank and RBC called for 75 basis points.