REGULATION · US
Federal Reserve raises rates to 3.75–4%; funding costs for cross-border payments rise
The Fed raised its target rate by 25 basis points to 3.75–4% on Sept. 16, citing persistent inflation. Reserve balance rate rose to 3.90%. Direct impact: higher wholesale funding costs for payment rails and liquidity platforms.
WHY IT MATTERS
Tighter monetary conditions increase cost of capital for fintech lenders, payment processors, and BNPL platforms; compliance and risk models must recalibrate for margin compression and reduced arbitrage.
Source: PYMNTS · 2026-09-17