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Fed Lifts Rates to 4.00% as Inflation Persists

By Markets Desk · 2026-09-16 · Updated 2026-09-16 23:58 UTC
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Illustration: Tradingbird

The Federal Reserve, led by Chair Kevin Warsh, raised rates to 4.00% to combat persistent inflation, a decision that drew sharp criticism from President Trump. While the hike was widely anticipated, the accompanying projections and Warsh’s press conference signaled a potentially extended cycle of increases, sending short-term U.S. Treasury yields higher.

  • GN markets/policy (en-US) reports that President Trump has publicly condemned the move, demanding rates drop to 1% or less, while Fed Chair Kevin Warsh defended the decision as necessary to remove accommodation from a strong economy. Market reaction turned hawkish as the two-year Treasury yield spiked above 4.74% following comments suggesting further hikes are likely this year.

    Source: The Globe and Mail

  • The Federal Reserve raised its benchmark rate by 25 basis points, setting the target range between 3.75% and 4.00%. This marks the first increase since summer 2023.

    Source: livenowfox.com
Based on reporting by livenowfox.com and The Globe and Mail, compiled by the Tradingbird desk.

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