Fed Hikes Rates for First Time Since 2023 as Bitcoin Surges

• The Federal Reserve raised the federal funds rate by 25 basis points to a target range of 3.75% to 4.00% in a unanimous vote by all 12 FOMC members.
• Bitcoin traded between $75,000 and $75,800 before touching $76,000 following the release, while the broader crypto market pulled back 2.18% on the day.
• August’s Producer Price Index rose 5.4% year-over-year, while the Consumer Price Index stood at 3.4%.

The U.S. Federal Reserve raised borrowing costs this Wednesday, marking the first time the Fed raises rates since 2023. The decision set the benchmark interest rate within a range of 3.75% to 4.00%, prompting an immediate reaction in the price of Bitcoin.

FED RAISES RATES 25 BPS TO 3.75%-4.00% TARGET RANGE

— *Walter Bloomberg (@DeItaone) September 16, 2026

The Federal Open Market Committee (FOMC) decision matched financial market expectations. CME FedWatch data indicated a 93% implied probability favoring this hike heading into the announcement.

The central bank’s move responded to a recent uptick across U.S. inflation metrics. The Department of Labor reported that the Producer Price Index (PPI) climbed 5.4% year-over-year in August, accelerating from 4.8% in July. Concurrently, the Consumer Price Index (CPI) posted a 0.4% monthly rise, with gasoline prices accounting for roughly one-third of that increase.