Federal Reserve Raises Interest Rates for First Time Since 2023

The Federal Reserve raised the target range for the federal funds rate by ¼ percentage point to a range of 3 ¾% to 4% on September 16, the first increase since 2023.

“Economic activity is expanding at a solid pace. While uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient,” the Federal Reserve issued. “Productivity growth is strong, and capital investment is robust. Job gains have kept pace with the workforce, and the unemployment rate has changed little.”

According to the Federal Reserve, the policy action “will support a timelier return to the Committee’s 2 percent goal.”

In addition, the national average on-highway diesel price reached an all-time record high of $6.31 per gallon according to data from AAA. The national average price for regular gas today is $4.44 per gallon, which is down from the May peak but ranks among the highest seasonal averages in recent years outside of the 2022 record highs.