Topic

Fed hikes to prevent mistrust

5m

The Federal Reserve raised interest rates, a decision SB1 Markets chief economist Harald Magnus Andreassen said was necessary to avoid "mistrust", while JP Morgan outlined divergent market scenarios.

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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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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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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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BREAKING:

WASHINGTON (AP) - Federal Reserve hikes key interest rate for 1st time in 3 years, defying Trump's demand for cut.
September 16, 2026 at 6:04 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
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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

Reposted by Francesco Saraceno

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Federal Reserve defies Trump with first rate rise since 2023 ft.trib.al/mbNixgu
Federal Reserve defies Trump with first rate rise since 2023
Central bank signals willingness for further action as chair Kevin Warsh warns that ‘inflation is too high and has been for too long’
ft.trib.al
September 16, 2026 at 9:13 PM
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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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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
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Welcome to Fed Decision Day!
It is striking to see the market pricing in a 90% (yes 90%) probability of a rate hike today despite mixed economic data, uneven demand-side indicators, a delicate supply-side balance, a relatively dovish tone from several senior FOMC members, and a Chair intent on ...
September 16, 2026 at 11:32 AM
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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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...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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... rate decision: push against against a headline rate back at 3% for the first time since March on worries that it may spill into core, or hold off because core is contained? (Markets are pricing in an 80% probability of a hold.)
#economy #markets #centralbanks

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September 16, 2026 at 9:53 AM
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Fed Delivers First Rate Hike in Years With Unanimous Vote - WSJ www.wsj.com/economy/cent...
Fed Delivers First Rate Hike in Years With Unanimous Vote
Most officials penciled in one more increase this year. An energy shock and a surge of AI investment have reshaped the inflation outlook.
www.wsj.com
September 16, 2026 at 9:43 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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Suck it, Unitary Executive Theory
September 16, 2026 at 6:13 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

Reposted by Thomas Masterson

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White House's Desai: The Fed rate hike is rather unfortunate - Fox News.
September 16, 2026 at 7:08 PM