Federal Reserve Board minutes covering meetings on August 17, September 9 and September 16, 2026, show that policymakers held the primary credit rate at 3.75% at the first two meetings before approving a rise to 4%, effective September 17. At the September 16 joint meeting, the Federal Open Market Committee also raised its federal funds rate target range by 25 basis points, to 3.75%–4%.
At the August 17 meeting, the Board approved keeping the primary credit rate at 3.75%, despite requests from the Kansas City and Cleveland Reserve Banks to raise it to 4%. The Board also renewed the formulas for secondary and seasonal credit rates.
The Board again kept the primary credit rate at 3.75% on September 9. The minutes report that Reserve Bank directors described economic conditions as stable overall, with generally stable labor markets, adequate labor supply and moderate wage pressures. They also noted hiring challenges and higher pay for some skilled roles, as well as input-cost pressures from oil and fuel, tariffs, healthcare expenses and competition for resources and supplies related to AI development.
On September 16, the Board approved raising the rate paid on reserve balances from 3.65% to 3.9% and the primary credit rate from 3.75% to 4%, both effective September 17. The minutes say the Board reached a consensus on the 25-basis-point increase in the primary credit rate.
The secondary credit rate formula remains 50 basis points above the primary credit rate. The seasonal credit rate is recalculated every two weeks using the average of the daily effective federal funds rate and the three-month certificate of deposit rate over the previous 14 days, rounded to the nearest five basis points.
Sources: Federal Reserve Press Releases.