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Fed Hikes Rates to 4.00 Percent

By Markets Desk · 2026-09-16 · Updated 2026-09-16 23:47 UTC
A large, ornate neoclassical building with tall columns and a pediment, standing against a clear sky.
Illustration: Tradingbird

The Federal Reserve has hiked rates to 3.75%-4.00%, its first increase since July 2023, to combat inflation driven by energy costs and stronger-than-expected core CPI data. This policy shift defies President Trump's pressure to lower rates and contradicts earlier forecasts of 2026 cuts.

  • Yonhap News Agency notes that the rate decision stands despite President Trump's threats to halt trade with surplus nations unless borrowing costs are lowered, a move seen as a setback for the administration ahead of the November midterms. The agency also highlights that core CPI data released last month beat forecasts, further justifying the Fed's stance against persistent price pressures.

    Source: Yonhap News Agency

  • According to GN markets/inflation (en-US), the rate hike is a direct response to the Iran war driving up global energy prices, with diesel hitting a record $6.31 per gallon and CPI running at 3.4% annually. The report notes this marks a sharp reversal from earlier 2026 expectations of rate cuts, as Fed Chair Kevin Warsh prepares to defend the move in an upcoming press conference.

    Source: CBS News

  • The US Federal Reserve raised its benchmark rate by 25 basis points on Wednesday. This is the first increase since July 2023.

    Source: The Guardian
Based on reporting by The Guardian, CBS News and Yonhap News Agency, compiled by the Tradingbird desk.

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