Stable inflation control is the foundation for economic development
On September 17, 2026, the Fed raised interest rates by 25 basis points, bringing the cap to 4% and the floor to 3.75%—the first time in three years. Not a single dissenting vote.
The message from the Fed was cold but clear: inflation is still ruling too high and for too long. Of the 18 officials who submitted forecasts, 16 want further tightening this year; none chose to stand pat, and certainly none chose easing. Chair Warsh—who quietly did not submit a dot plot—spoke plainly: the summer brought no meaningful signals of improvement.
The Fed also looked ahead: its 2026 PCE inflation forecast was raised to 3.7%, and GDP to 2.3%. The market reacted immediately: gold fell by more than 50 USD, the DXY jumped by more than 50 points, and the two-year bond yield hit a peak not seen in over two years. Goldman Sachs, Bank of America, Morgan Stanley—those notorious names—moved in unison, betting that the Fed will raise rates further.
Trump wants rates below 1%, calling this decision “regrettable.” But the Fed still follows its own path, because inflation is not just a number—it quietly erodes purchasing power, confidence, and even the economy’s breathing. Keeping prices stable is what preserves the foundation for development. An old truth, but never an outdated one.
On September 17, 2026, the Fed raised interest rates by 25 basis points, bringing the cap to 4% and the floor to 3.75%—the first time in three years. Not a single dissenting vote.
The message from the Fed was cold but clear: inflation is still ruling too high and for too long. Of the 18 officials who submitted forecasts, 16 want further tightening this year; none chose to stand pat, and certainly none chose easing. Chair Warsh—who quietly did not submit a dot plot—spoke plainly: the summer brought no meaningful signals of improvement.
The Fed also looked ahead: its 2026 PCE inflation forecast was raised to 3.7%, and GDP to 2.3%. The market reacted immediately: gold fell by more than 50 USD, the DXY jumped by more than 50 points, and the two-year bond yield hit a peak not seen in over two years. Goldman Sachs, Bank of America, Morgan Stanley—those notorious names—moved in unison, betting that the Fed will raise rates further.
Trump wants rates below 1%, calling this decision “regrettable.” But the Fed still follows its own path, because inflation is not just a number—it quietly erodes purchasing power, confidence, and even the economy’s breathing. Keeping prices stable is what preserves the foundation for development. An old truth, but never an outdated one.
