NAFA member Mike Smith, President of Scope Aircraft Finance, shares his latest article in The Plane Truth.
As was widely anticipated, the Federal Reserve Open Market Committee (FOMC) increased its target rate by 0.25% at the conclusion of its meeting on September 16. This was the first rate increase in over 3 years, and in reading the tea leaves after the meeting, we should expect another 0.25% increase by the FOMC before the end of the year.
This is a material change in posture compared to where we started in 2026. At the start of the year, the market expected rate cuts from the FOMC. What happened? Ultimately, it goes back to the Federal Reserve’s “dual mandate” of maximum employment and price stability (defined as a 2% inflation rate). And as we all know, inflation continues to run a little hot.
This article was originally published in Issue #24 of The Plane Truth on September 24, 2026.