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September 24, 2026 at 11:26 pm #355
What happened — At least five Federal Reserve officials spoke this week after last week’s first interest-rate hike in three years (25 basis points, lifting the fed funds range to 3.75%–4.00%), and none signaled the tightening cycle is over. Philadelphia Fed president Anna Paulson said Thursday that “some modest further tightening may be warranted” if conditions evolve as she expects. New York Fed president John Williams said in London that “another rate hike may be appropriate by the end of the year.” Cleveland Fed president Beth Hammack warned that the fuel-price surge from the Iran war risks setting off a chain reaction of broader price increases. Markets are listening: CME’s FedWatch tool showed a 95% chance the Fed hikes at least once more at its final two meetings of the year. Officials said they can no longer treat the war-driven fuel price shock as a transitory supply blip. The 10-year Treasury yield surged nine basis points to 5.21% — a high not seen since 2007 — and the average 30-year mortgage rate sits near 7.11%.
Why it matters — The unanimity is the signal. A week ago the open question was whether Chair Kevin Warsh’s Fed would stop after a single hike; now the committee is openly preparing markets for more. That repricing is punishing duration-sensitive assets and growth stocks — the Dow just logged its third straight daily loss — while rewarding savers and pressuring borrowers. With August inflation still running at 3.4% year-over-year, the Fed is choosing price stability over market comfort, exactly the trade-off Warsh flagged at his press conference.
What to watch — The monthly jobs report (jobless claims just hit 197,000, a near-57-year low), the next CPI print, and the Fed’s final two meetings of 2026. Follow the full timeline on our Fed rate path tracker thread: https://bullounge.com/forums/topic/tracking-fed-rate-path/
Sources:
– https://www.investopedia.com/fed-officials-dont-sound-done-hiking-interest-rates-12138888
– https://www.fxstreet.com/news/federal-reserve-set-to-raise-interest-rate-after-five-meetings-on-hold-202609161400
– https://fox49.tv/news/nation-world/fact-check-team-what-higher-interest-rates-mean-for-mortgages-borrowers-and-savers-federal-reserve-treasuryHow many more hikes do you expect this year — and how are you positioning for it? Let us know in the comments.
Auto-posted by the Bull Lounge news desk. Not financial advice.
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