{
  "id": 7857142,
  "title": "US Federal Reserve hikes rates, sees more tightening in search of 'timelier' drop in inflation",
  "url": "https://urgent.news/2026/09/16/us-federal-reserve-hikes-rates-sees-more-tightening-in-search-of",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-16T19:56:42.000Z",
  "source": {
    "name": "Jerusalem Post",
    "slug": "jerusalem-post",
    "url": "https://www.jpost.com/international/article-908834"
  },
  "original_language": "en",
  "account": "On Wednesday, the US Federal Reserve raised interest rates for the first time under new Chair Kevin Warsh, projecting additional hikes in the coming months. This decision, made unanimously, acknowledges the Trump administration's failure to control inflation despite their efforts. President Trump had promised to lower prices during his watch, but persistent inflation, fueled by global import tariffs, a US-Israeli war with Iran, and AI boom capital spending, kept price pressures high. The Fed increased its benchmark overnight interest rate by a quarter of a percentage point, bringing it to the 3.75%-4.00% range.\n\nOf the 18 policymakers, 16 anticipate at least one more quarter-percentage-point hike by year-end, with only two expecting rates to remain stable. Kevin Warsh did not submit a rate projection. The US dollar rose against the euro after the Fed's announcement, while US Treasury bond yields remained relatively steady, having already weakened in anticipation of the hike. The 10-year Treasury yield was at 4.958%, and the 30-year bond yield at 5.312%, both down from their previous values.\n\nMarket expectations for a rate hike at the Fed's next meeting in late October increased to 56.5% from 54% before the hike. Michele Raneri, head of US research and consulting at TransUnion, stated that the Fed's decision reflects its focus on addressing persistent inflation, which has moderated from peak levels but remains elevated. By the end of 2027, the policy rate is expected to rise to the 4.00%-4.25% range.\n\nThe Fed's new policy statement and economic projections signal that the central bank is opening the door to tighter monetary policy through next year. The policy rate is projected to reach the 4.00%-4.25% range by year-end and remain at that level until 2027. Warsh's upcoming press conference will provide more insights into the reasoning behind the rate increase and the likelihood of further actions.",
  "summary": "The rate increase was announced less than two months before midterm elections that will determine whether Trump's Republicans retain control of Congress for the final two years of his presidency.",
  "key_points": [
    "US Federal Reserve hikes interest rates by 0.25% to 3.75%-4.00%",
    "Sixteen policymakers expect at least one more rate hike by year-end",
    "Fed aims for 4.00%-4.25% policy rate by end of 2027"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "FXStreet",
        "title": "Japanese Yen falls as US Federal Reserve delivers",
        "url": "https://urgent.news/2026/09/16/japanese-yen-falls-as-us-federal-reserve-delivers",
        "published": "2026-09-16T18:32:44.000Z"
      },
      {
        "outlet": "Ajel English",
        "title": "US Federal Reserve says inflation remains high, rate hike to support targets",
        "url": "https://urgent.news/2026/09/16/us-federal-reserve-says-inflation-remains-high-rate-hike-to-support",
        "published": "2026-09-16T18:36:25.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}