Topic

Fed raises benchmark interest rate

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The Federal Reserve, led by Chairman Kevin M. Warsh, raised its benchmark interest rate by 25 basis points to combat inflation it called "too high and persistent."

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Fed decided to raise rates by a quarter of a percentage point, and -- more importantly -- the decision was unanimous. Markets will be happy that the chair has decided to signal he's more of a Serious Kevin than a Sockpuppet Kevin (which was their main concern).
September 16, 2026 at 6:09 PM
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The Federal Reserve voted to raise interest rates by a quarter point as policymakers try to tamp down inflation after more than five years of above-target price increases.
Full coverage: www.nytimes.com/live/2026/09...
#EconSky
Live Updates: Fed Faces a Credibility Test on Interest Rates
www.nytimes.com
September 16, 2026 at 6:00 PM
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Remember, he's Silent Kevin because he wants markets to focus on the economy rather than the Fed.

Let's check in on how that's working.
September 16, 2026 at 6:15 PM
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The dot plot says their median view is that the "neutral rate" is 3.25%. So, the way the FOMC thinks about the world, yesterday the fed funds target was above the neutral rate, and today it went higher. So policy was tight and got tighter, by their logic. They're not removing accommodation.
Fed's Warsh: "I would be hard pressed to describe broad financial conditions as restrictive. This view was widely shared by the committee, so we removed a dose of accommodation...Today's policy action will support a timelier return to the committee's 2% goal."
September 16, 2026 at 9:24 PM
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With market expectations sitting at 92%, the Fed had little choice but to deliver a 25-basis-point rate hike, its first since 2023. Holding rates steady against such strong expectations likely would have driven market yields even higher.
Perhaps most surprising, however,...

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September 16, 2026 at 6:21 PM
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You will pay more for your mortgage and your credit card bills because of Donald Trump.
Breaking news: The Federal Reserve raised interest rates by a quarter point, its first increase in more than three years, as persistently high oil prices from the Iran conflict send inflation rippling through the economy.
Fed raises interest rates by quarter point to tackle inflation
The Federal Reserve raised interest rates by a quarter a percentage point on Wednesday to try to tame inflation, raising the borrowing cost on a variety of business and consumer loans.
www.washingtonpost.com
September 16, 2026 at 7:09 PM

Reposted by David Darmofal

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WASHINGTON (AP) — The Federal Reserve raised its benchmark interest rate Wednesday for the first time since 2023 in an effort to quell stubbornly-high inflation, a move that could spur a sharp response from the White House.

apnews.com/article/fede...
Federal Reserve hikes key rate for 1st time in 3 years, defying Trump demands for a cut
Federal Reserve Chair Kevin Warsh is stuck between two strong but opposing forces: Financial markets that anticipate the central bank will raise interest rates, and President Donald Trump, who wants the Fed to cut them or leave them unchanged.
apnews.com
September 16, 2026 at 6:07 PM
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The Fed Raises Interest Rates For the First Time in Three Years www.wsj.com/podcasts/wha...
What’s News - WSJ Podcasts
What's News brings you the biggest news of the day, from business and finance to global and political developments that move markets. Get caught up in minutes twice a day on weekdays, then take a step...
www.wsj.com
September 16, 2026 at 10:07 PM
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Fed's Warsh: "I would be hard pressed to describe broad financial conditions as restrictive. This view was widely shared by the committee, so we removed a dose of accommodation...Today's policy action will support a timelier return to the committee's 2% goal."
September 16, 2026 at 6:33 PM
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Breaking news: The Federal Reserve raised interest rates by a quarter point, its first increase in more than three years, as persistently high oil prices from the Iran conflict send inflation rippling through the economy.
Fed raises interest rates by quarter point to tackle inflation
The Federal Reserve raised interest rates by a quarter a percentage point on Wednesday to try to tame inflation, raising the borrowing cost on a variety of business and consumer loans.
www.washingtonpost.com
September 16, 2026 at 6:16 PM
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The Fed Raises Interest Rates For the First Time in Three Years www.wsj.com/podcasts/wha...
What’s News - WSJ Podcasts
What's News brings you the biggest news of the day, from business and finance to global and political developments that move markets. Get caught up in minutes twice a day on weekdays, then take a step...
www.wsj.com
September 16, 2026 at 10:06 PM

Reposted by David Darmofal

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The Fed’s preferred inflation gauge. Above target for 65 consecutive months.

(via Bianco)
September 16, 2026 at 2:52 PM
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...breaking the "hall of mirrors" phenomenon
It is equally interesting to see how eagerly some market participants await the updated rate "dots," even as momentum builds against the current approach to forward guidance.
All this underscores just how difficult it is to evolve a Fed–market paradigm...
September 16, 2026 at 11:33 AM
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Interest rates just went up because of Donald Trump & JD Vance’s mismanagement of our economy. Darline Graham Nordone supports their economic mismanagement 100%. @drannieandrews.com opposes their mismanagement and will help you buy what you need in your life.
September 16, 2026 at 6:06 PM
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Federal Reserve to announce interest rate decision as Trump calls for a cut www.nbcnews.com/business/eco...
Trump and the Federal Reserve are on a collision course over interest rates
Wall Street expects the Fed to hike rates Wednesday. The president wants a rate cut.
www.nbcnews.com
September 16, 2026 at 7:33 AM
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...anchored by years of handholding, a constant stream of official commentary, excessive backward-looking data dependency, and a forward guidance regime that stumbled into spurious accuracy.
More to follow.
#economy #markets #federalreserve

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September 16, 2026 at 11:34 AM
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Is the investigation of Federal Reserve Chair Kevin Warsh for mortgage fraud officially underway?
September 16, 2026 at 7:18 PM
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Suck it, Unitary Executive Theory
September 16, 2026 at 6:13 PM