The Fed raised its benchmark rate by 0.25 percentage point on Sept. 16, 2026, to 3.75%–4%, its first hike since July 2023. The hike can raise borrowing costs for women-owned firms facing unequal credit access; 16 of 18 Fed officials projected at least one more hike this year.
Inflation remained above the Fed’s 2% target, the committee’s stated reason for the hike. Its updated projections put the median 2026 federal funds rate at 4.1%, up from 3.8% in June; four of the 16 participants expecting at least one further increase anticipated two hikes.
Fed Communities’ survey showed women-owned firms were fully approved for 44% of loan or line-of-credit applications in 2023, versus 54% for men-owned firms; in 2024, the rates were 54% and 50%, respectively. CentsIQ says credit lines, credit cards and variable-rate SBA 7(a) loans tied to the prime rate typically adjust within a billing cycle or two of a Fed hike; fixed-rate SBA 504 loans are unaffected. A CDFI Fund report says community development financial institutions financed more than 155,000 women-owned businesses over the prior three years.
