# Fed lifts benchmark rate 25 basis points in first increase since 2023

_Published Friday, September 18, 2026 at 10:18 PM EDT · Policy, Infrastructure · Latest · Tier 2 — Notable_

![Fed lifts benchmark rate 25 basis points in first increase since 2023 — Primary](https://imgproxy.divecdn.com/79Dth8xezjvKPFnNFvax70E9fjnBVYaDi6hwiZy7gv4/g:ce/rs:fit:770:435/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9HZXR0eUltYWdlcy0yMjg4MTg3ODQ4LmpwZw==.webp)

The Federal Reserve raised its benchmark interest rate by 25 basis points, its first increase since 2023, with inflation still above the 2% target.

ConstructConnect's Michael Guckes said higher short-term and prime-tied credit will lift borrowing costs and may keep marginal commercial projects from going to bid. FMI's Brian Strawberry said the 10-year Treasury, not the overnight rate, drives commercial real estate financing, and a credible inflation fight could pull long-term yields down.

Housing and private commercial work are most exposed, while data-center and semiconductor plants are more insulated because much of that spending runs on corporate cash, equity values, or government incentives.

## Sources

- [Construction Dive](https://www.constructiondive.com/news/fed-raises-rates-construction-inflation-september-2026/830559/)

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Canonical: https://techandbusiness.org/newswire/MSRPZlaxcLcjGDUBGc4j1e
Published: 2026-09-19T02:18:25.440Z
Story chronology: 2026-09-16T18:07:44.000Z
Retrieved: 2026-09-19T04:20:41.379Z
Publisher: Tech & Business (techandbusiness.org)