#fedhikes25bpsusstocksclose
BREAKING: Fed Hikes 25bps – First Since 2023 – US Stocks Close Lower
Wall Street just got a cold dose of reality. On September 16, 2026, the Federal Reserve under Chair Kevin Warsh delivered a unanimous 25 basis point rate hike, lifting the federal funds target to 3.75%-4.00%. It was the first increase in three years. Markets initially held up, then sold off hard as Warsh’s hawkish press conference emphasized that “inflation remains elevated” and more tightening may be needed. Closing numbers:
Dow Jones: -1.21% (≈ -631 points) S&P 500: -0.45% Nasdaq: -0.01%
Energy and financials led the decline. Yields jumped, with the 2-year rising sharply. This is no “one-and-done.” The dot plot shows most officials expect at least one more hike in 2026.
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