16 Fed Officials Expect Another Hike This Year: What The Dot Plot Just Revealed

The Fed did more than raise rates today. It told the market it is not done.
In the new Summary of Economic Projections released after the September 16 decision, 16 of 18 policymakers who submitted forecasts now expect at least one more quarter-point hike before the end of 2026. Only two see rates holding steady from here. That is a dramatic hawkish shift and the strongest signal yet that the first hike since July 2023 will not be the last.
1. The Dot Plot That Changed Everything
The vote to hike to 3.75%-4.00% was unanimous, but the dots were the real message. Sixteen officials penciled in at least one additional hike this year, with four members seeing the potential for two more hikes before December. The median forecast now puts rates in a 4.00%-4.25% range by year-end before retreating in 2028.
Sixteen of 19 officials expect that next move to come at either the October or December meeting, which effectively locks in market expectations for another tightening move. For comparison, just three months ago, zero officials saw a hike in 2026.
2. Why Officials Are Turning Hawkish
Chair Kevin Warsh, who took office in late May, has made one point clear: the Fed needs to see underlying inflation moving toward 2% clearly and at sufficient speed. It is not.
The economy is running stronger than the Fed previously estimated, and that strength is keeping price pressure alive. The median projection for PCE inflation does not return to 2% until 2029. With growth resilient and 162,000 jobs added in August, policymakers believe they have room to stay restrictive without breaking the labor market.
3. What Happens Next in 2026 and 2027
The immediate path is set. Officials expect one more hike this year after today's move. The division comes in 2027. Ten officials see no more moves next year, while eight still pencil in another quarter-point increase. No rate cuts are projected for 2027 in the median view, with easing only returning in 2028.
This pushes the terminal rate, or peak in rates, up to 4.00%-4.25%, from 3.75% at the previous meeting. The message is higher for longer, with a clear bias to do more if inflation does not cool.