The Federal Reserve raised its target federal funds rate by 25 basis points to a range of 3.75–4.00% at the September 16 FOMC meeting, the first hike in three years. Twelve of eighteen FOMC officials projected at least one additional hike in 2026, with four projecting two more, signaling a sustained restrictive posture well into year-end.
For Armada's traditional repo desk, the rate move directly resets SOFR-linked pricing on all floating-rate agreements and changes the opportunity cost calculus for counterparties—hedge funds, MMFs, and asset managers—on overnight and term repo. Counterparties will recalibrate their cash deployment strategies, and Armada must ensure rate sheets, haircut schedules, and margin call thresholds reflect the new corridor immediately.