Story perspectives

Fed Raises Rates 0.25 Points, Flags Further Inflation Fight

By Drooid · Sep 17, 2026, 2:00 AM UTC · How we work

Summary

Fed Raises Rates

The Federal Reserve raised its benchmark interest rate by 0.25 percentage point on September 16, 2026.
Fed Chair Kevin Warsh said inflation remains too high, hinting at possible further hikes.
U.S. stocks fell, with the Dow down 631.21 points to 51,461.90.
The 10-year Treasury yield rose to 5.047%, the highest level since 2007.
JPMorgan Chase survey showed Treasury short positions increased 10 points week-over-week, the fastest rise since early 2025.

Summary

Trump Urges Low Rates

President Donald Trump urged the Federal Reserve to keep borrowing costs low, demanding the lowest global rate.
Fed official Warsh said the Fed’s independence is “a two-way street,” rejecting political pressure.
The 200-day war with Iran has lifted oil prices, adding to inflation worries.
Fed officials projected inflation at 3.7% for 2026, up from 3.6% in June.

History

Historical Context

After Jimmy Carter appointed Paul Volcker as Fed chair in August 1979, Volcker and Treasury Secretary G. William Miller let the federal funds rate climb from about 11% to a 20% peak in June 1981, driving inflation down from a 14.8% high in March 1980 to below 3% by 1983 while unemployment briefly topped 10.8%.

1 of 3

Fed Raises Rates

The Federal Reserve raised its benchmark interest rate by 0.25 percentage point on September 16, 2026.
Fed Chair Kevin Warsh said inflation remains too high, hinting at possible further hikes.
U.S. stocks fell, with the Dow down 631.21 points to 51,461.90.
The 10-year Treasury yield rose to 5.047%, the highest level since 2007.
JPMorgan Chase survey showed Treasury short positions increased 10 points week-over-week, the fastest rise since early 2025.

1 / 3