Story perspectives

Fed Chair Warsh to Hike Rates 0.25% September 16

By Drooid · Sep 16, 2026, 1:56 AM UTC · How we work

Summary

Story summary

Fed Chair Kevin Warsh will raise rates by 0.25 percentage points on September 16, 2026.
U.S. Treasury yields rose to 5.04%, their highest level since 2007, on September 15, 2026.
Treasury Secretary Scott Bessent called recent bond-buyback operations “successful” after Treasury intervened to lower yields.
President Donald Trump opposed the rate hike, arguing lower rates boost the economy.
Morgan Stanley and Goldman Sachs now forecast a Fed rate increase, abandoning earlier hold predictions.

History

Historical Context

In June 1981, Fed Chairman Paul Volcker pushed the federal-funds rate to roughly 20%, sparking the 1980-82 recession but driving inflation from a 14.8 % peak in March 1980 down to under 3 % by 1983. The pattern reappeared in September 2026 when the Fed raised rates by 0.25 percentage point, echoing the same tight-money approach to anchor inflation expectations.

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Story summary

Fed Chair Kevin Warsh will raise rates by 0.25 percentage points on September 16, 2026.
U.S. Treasury yields rose to 5.04%, their highest level since 2007, on September 15, 2026.
Treasury Secretary Scott Bessent called recent bond-buyback operations “successful” after Treasury intervened to lower yields.
President Donald Trump opposed the rate hike, arguing lower rates boost the economy.
Morgan Stanley and Goldman Sachs now forecast a Fed rate increase, abandoning earlier hold predictions.

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