Fed Minutes Point to Possible 2026 Rate Increase as Inflation Persists

Federal Reserve officials signaled that another interest-rate increase may be needed in 2026 as persistent inflation pressures keep monetary policy restrictive, a stance that could weigh on crypto and other risk assets.

Minutes from the Federal Open Market Committee’s Sept. 15-16 meeting showed that most participants viewed another increase in the federal funds rate as likely appropriate before the end of 2026 if economic conditions warranted it.

The FOMC unanimously raised its target range by 25 basis points at the meeting, bringing it to 3.75%-4.00%. The move was the first rate increase since 2023 and followed a decision to hold rates steady in July.

Officials remained concerned that inflation could prove persistent. The minutes pointed to energy costs and investment tied to artificial intelligence as potential contributors to price pressures, complicating the outlook as the Fed works toward its 2% inflation target.

The minutes did not specify when another increase might occur. Future decisions will depend on incoming economic data and whether inflation shows clearer signs of moderating.