FED OFFICIALLY RAISES INTEREST RATES TO 4.00%: HOW DO FINANCIAL MARKETS AND CRYPTO REACT?
Below is a detailed summary of developments from the FOMC meeting on 16/09/2026 and the reaction of global financial markets.
1. The key decision from the Federal Reserve (Fed)
The Federal Open Market Committee (FOMC) reached unanimous approval (12-0) on the main points:
* Adjustment: Raise the benchmark interest rate by an additional 25 basis points (0.25%), bringing the federal funds rate range to 3.75%–4.00%.
* Main reason: Inflationary pressure flared up again due to higher energy prices and escalating geopolitical tensions in the Middle East, even though U.S. economic growth has still maintained its recovery momentum.
* Policy guidance: The Fed stressed that it will not commit to a fixed path, but will adjust flexibly based entirely on the real economic data to come. The Dot Plot chart suggests the Fed is likely to hold rates steady or adjust them further by up to one more round in 2026.
2. Immediate reaction across markets
* U.S. Stock Market: Major indexes such as the Nasdaq and the S&P 500 saw a wave of profit-taking and short-term declines when the news broke. However, the sell-off quickly narrowed and prices rebounded, because the market had already priced in (priced-in) about 90% of this scenario.
* Crypto Market: Bitcoin (BTC) and Altcoins experienced strong two-way liquidity-sweeping volatility in the first 1–2 hours. After the market digested a message that was not overly hawkish from the press conference, BTC held key technical support levels and showed buying demand at the bottom.
$NVDAB $BTC
Below is a detailed summary of developments from the FOMC meeting on 16/09/2026 and the reaction of global financial markets.
1. The key decision from the Federal Reserve (Fed)
The Federal Open Market Committee (FOMC) reached unanimous approval (12-0) on the main points:
* Adjustment: Raise the benchmark interest rate by an additional 25 basis points (0.25%), bringing the federal funds rate range to 3.75%–4.00%.
* Main reason: Inflationary pressure flared up again due to higher energy prices and escalating geopolitical tensions in the Middle East, even though U.S. economic growth has still maintained its recovery momentum.
* Policy guidance: The Fed stressed that it will not commit to a fixed path, but will adjust flexibly based entirely on the real economic data to come. The Dot Plot chart suggests the Fed is likely to hold rates steady or adjust them further by up to one more round in 2026.
2. Immediate reaction across markets
* U.S. Stock Market: Major indexes such as the Nasdaq and the S&P 500 saw a wave of profit-taking and short-term declines when the news broke. However, the sell-off quickly narrowed and prices rebounded, because the market had already priced in (priced-in) about 90% of this scenario.
* Crypto Market: Bitcoin (BTC) and Altcoins experienced strong two-way liquidity-sweeping volatility in the first 1–2 hours. After the market digested a message that was not overly hawkish from the press conference, BTC held key technical support levels and showed buying demand at the bottom.
$NVDAB $BTC
