US Fed Raises Interest Rates Amid Ongoing Inflation Concerns

The US Federal Reserve has raised interest rates for the first time in three years, increasing its overnight rate to between 3.75 and 4 per cent on September 16, 2026.

The decision comes as inflation remains elevated, with annualized US CPI holding at 3.4 per cent in August, well above the Fed's two per cent target.

However, core CPI, which ignores food and energy costs, was more reasonable at 2.4 per cent, while the personal consumption expenditures price index reached 3.7 per cent in July, driving bond markets to begin pricing in this hike.