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Fed Hikes Rates to 3.9 Percent

By Markets Desk · 2026-09-16 · Updated 2026-09-16 21:12 UTC
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Illustration: Tradingbird

The Federal Reserve unanimously raised its benchmark rate to 3.75%-4.00%, marking the first increase in three years under Chair Kevin Warsh. The move was justified by stubbornly high inflation fueled by geopolitical tensions and tech sector costs, with the committee now signaling a trajectory toward 4.25% by the end of 2026.

  • According to GN markets/inflation (en-US), the rate hike was a unanimous decision driven by persistent inflation that has exceeded targets for over five years, with the conflict in Iran and the AI boom cited as key cost drivers. The committee's dot plot indicates most members now project two total hikes for 2026, targeting a fed-funds range of 4.00% to 4.25% by year-end.

    Source: Morningstar

  • The Federal Reserve increased its benchmark rate by 25 basis points on Wednesday, marking the first hike in three years.

    Source: CBC
Based on reporting by CBC and Morningstar, compiled by the Tradingbird desk.

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