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Dow Drops 407 Points After Fed Raises Rates to 4%

By Markets Desk · 2026-09-16 · Updated 2026-09-16 20:01 UTC
A wooden gavel resting on a dark mahogany desk
Illustration: Tradingbird

The Dow dropped 407 points after the Federal Reserve raised rates to 4% to combat stubborn inflation, a move that signaled the bank's independence from President Trump's pressure to cut costs despite market expectations.

  • Tagesschau Wirtschaft reports that Fed Chair Kevin Warsh defended the hike as a necessary move to fulfill the congressional mandate for price stability, explicitly rejecting claims of political interference from President Trump and asserting the central bank's commitment to data-driven independence.

    Source: Tagesschau Wirtschaft

  • US stocks fell sharply as the Federal Reserve increased borrowing costs for the first time since 2023.

    Source: Yahoo Finance
Based on reporting by Yahoo Finance and Tagesschau Wirtschaft, compiled by the Tradingbird desk.

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