Yesterday, the Federal Reserve raised interest rates for the first time in more than three years, and stocks turned lower following the decision — leaving the TSP’s C and S Funds down roughly a third to half a percent on the day.
The Federal Open Market Committee (FOMC) voted unanimously to raise the target range for the federal funds rate by 25 basis points, to 3.75%–4.00%. The Fed said inflation remains elevated and that the move was intended to support a more timely return to its 2% inflation goal.
The bigger issue for markets may be what comes next. The Fed’s own quarterly projections point the same direction: 16 of the 18 policymakers who submitted forecasts see at least one more quarter-point hike before the year is out, keeping the path of interest rates in focus heading into the fourth quarter.
TSP Fund Returns for September 16
| Fund | Daily Change |
|---|---|
| G Fund | +0.01% |
| F Fund | −0.03% |
| C Fund | −0.44% |
| S Fund | −0.35% |
| I Fund | +0.02% |
The C Fund, which tracks the S&P 500, finished down 0.44%, while the S Fund also declined. The relatively modest moves were a reminder that changing interest-rate expectations can still produce noticeable swings in TSP stock and bond funds as investors weigh the Fed’s next steps.
You selected: Rest of U.S.
Estimate only. These figures apply a 3.8% increase to the 2026 LEO locality pay rates, per the 2027 alternative pay plan letter. OPM has not yet announced which law enforcement categories qualify for the 2027 increase or finalized the 2027 pay rates — expected around late December 2026 or early January 2027. Rates are capped at the 2026 Executive Schedule Level IV rate of $197,200; the actual 2027 cap may differ. Grades 3–10 use LEO special base rates; other grades use standard GS rates with locality pay applied.
| Grade | Step 1 | Step 2 | Step 3 | Step 4 | Step 5 | Step 6 | Step 7 | Step 8 | Step 9 | Step 10 |
|---|
Figures marked with an asterisk (*) are capped at the Executive Schedule Level IV rate.