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US Fed Hikes Rates to 4 Percent Amid Inflation Surge

By Markets Desk · 2026-09-16 · Updated 2026-09-17 00:06 UTC
A large, ornate neoclassical building with tall columns and a dome, bathed in soft morning light
Illustration: Tradingbird

The Federal Reserve has raised its benchmark rate to 4 percent to combat an inflation surge that has remained above its 2 percent target for five years. This decision, driven by a strong labor market, stands in direct opposition to President Trump's demands for cheaper credit and his recent threats of trade restrictions.

  • Handelsblatt Finanzen reports that Fed Chair Kevin Warsh faces internal dissent, noting that three officials voted for a rate hike in July despite the hold, and that the move directly defies President Trump's pressure for lower rates. The publication highlights that Trump has recently threatened a trade stoppage with several nations, arguing that rising borrowing costs ahead of the November midterms are damaging to his approval ratings.

    Source: Handelsblatt Finanzen

  • The Federal Reserve has officially lifted its benchmark rate to 4 percent, marking the first increase in three years as it moves to combat a renewed surge in inflation.

    Source: Al Jazeera
Based on reporting by Al Jazeera, Al Jazeera and Handelsblatt Finanzen, compiled by the Tradingbird desk.

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