Fed Hikes Rates Amid Warnings of Ongoing Inflation Pressure

The Federal Reserve delivered its first interest rate hike in three years on Wednesday, September 16, 2026. Chairman Kevin Warsh stressed policymakers' commitment to tackling inflation during a news conference following the Federal Open Market Committee meeting.

Warsh noted that inflation is still too high and emphasized the Fed's resolve to address it. The Fed approved the rate hike, signaling one more increase this year.

The Dow dropped 600 points in response to the rate hike and Warsh's comments on inflation, unnerving investors.