Ethereum Price Swings with Fed Rate Decision and Inflation Report

The price of Ethereum (ETH) fluctuated rapidly in September due to changing interest-rate expectations and economic news.

A US inflation report on August 31, 2026, showed a 0.4% increase in consumer prices, pushing annual inflation to 3.4%, with gasoline prices climbing 3.9% for the month.

This data recalibrated what traders expected from the Federal Reserve, causing ether's price to move before any policy decision was made.

On September 16, 2026, the Fed raised its benchmark rate by 25 basis points, settling in a new range of 3.75% to 4%. Renewed attention followed on the tradeoff between containing inflation and discouraging investor appetite for higher-risk assets like ether.