{"id":1099,"date":"2026-09-17T19:01:01","date_gmt":"2026-09-17T11:01:01","guid":{"rendered":"https:\/\/btbitcoin.net\/index.php\/2026\/09\/17\/morning-bid-a-timely-hike\/"},"modified":"2026-09-17T19:01:01","modified_gmt":"2026-09-17T11:01:01","slug":"morning-bid-a-timely-hike","status":"publish","type":"post","link":"https:\/\/btbitcoin.net\/index.php\/2026\/09\/17\/morning-bid-a-timely-hike\/","title":{"rendered":"Morning Bid: A timely hike"},"content":{"rendered":"
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By Anna Szymanski <\/p>\n

Sept 17 (Reuters) – Stocks edged up early on Thursday as investors digested the Federal Reserve’s first interest rate hike in three years. The central bank lifted the benchmark rate by a quarter point to 3.75%-4.00% and signalled more tightening to come. <\/p>\n

While short-dated Treasury yields rose, longer-dated yields nudged \u200cslightly lower, suggesting investors are gaining confidence in Fed Chair Kevin Warsh’s ability to do what’s necessary to get inflation back down to the 2% target. <\/p>\n

While the \u200crate hike was in line with market expectations, the messaging was slightly more hawkish than many anticipated. Warsh oversaw a unanimous decision to raise the policy rate. <\/p>\n

Moreover, 16 of the 18 policymakers submitting a rate projection \u200bin the so-called “dot plot” expected at least one more quarter-point hike by the end of 2026. The Fed chair, who is averse to forward guidance, did not submit a projection, though his comments after the release were decidedly hawkish. <\/p>\n

The policy statement noted the move would “support a timelier return” to the 2% target rate. Warsh justified the hike by pointing to persistently above-target inflation, as well as recent signs of a strengthening economy. <\/p>\n

President Trump – a longtime advocate of easing policy – responded to the move by calling once again for lower interest rates, but he stopped \u200cshort of criticizing Warsh, a stark contrast from his treatment of \u2060Warsh’s predecessor Jerome Powell. <\/p>\n

There may be more bad news for the president on the rates front. Fed funds futures late on Wednesday indicated a roughly 50% chance of a hike at the central bank’s next meeting in October, which would come just before the midterm elections \u2060that will decide control of Congress. <\/p>\n

But markets appear content with the Fed’s decisive move, even if the path forward is still unclear. The 10-year Treasury yield eased below 5% after initially rising slightly following the policy decision, while the 30-year nudged lower but stayed near a recent 19-year high. <\/p>\n

Wall Street futures are also pointing higher before the bell on Thursday, after major indexes closed lower on \u200bWednesday. <\/p>\n

Attention \u200bnow turns to the other major central bank decisions due this week, with the Bank of England \u200bexpected to stand pat today and the Bank of Japan very \u200clikely to hike again on Friday. <\/p>\n

In energy markets, oil prices extended losses on Thursday after both Brent and WTI settled some 3% lower the day before. Saudi Arabia is offering additional crude cargoes through Oman, according to sources. That’s expected to ease at least some of the supply loss from recent attacks on the Kingdom’s East-West pipeline. <\/p>\n<\/p><\/div>\n

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However, fighting escalated between Saudi Arabia and Yemen’s Iran-backed Houthis on Wednesday as they traded further strikes and widened a new front in the Middle East conflict – one that’s given Iran a strategic boost. President Trump, meanwhile, says he hopes that an end to the Iran war is near. <\/p>\n

Finally, the U.S. House of Representatives on Wednesday passed a sweeping sanctions and tariff bill intended \u200cto increase economic pressure on Russia over its invasion of Ukraine. The bill will now be sent \u200bto President Trump to sign into law. <\/p>\n

Chart of the day <\/p>\n

The Bank of England is expected to keep interest \u200brates steady at 3.75% on Thursday. But financial markets on Wednesday pointed to \u200ban 80% chance of a hike at the BoE’s next meeting in November, with energy prices elevated and already above-target inflation accelerating in \u200cAugust. <\/p>\n

Today’s events to watch <\/p>\n

\u2022 U.S. weekly jobless claims (8:30 a.m. EDT), August housing \u200bstarts (8:30 a.m. EDT), Philadelphia Fed business index \u200bfor September (8:30 a.m. EDT) <\/p>\n

\u2022 U.S. 10-year TIPS auction (1 p.m. EDT) <\/p>\n

\u2022 Bank of England interest rate announcement (7 a.m. EDT) <\/p>\n

Before you go, listen to the latest episode of the Morning Bid daily podcast, where we discuss the Fed’s hawkish turn and the other central bank policy decisions due this week. <\/p>\n

Subscribe to hear Reuters journalists discuss the biggest \u200bnews in markets and finance. <\/p>\n

Want to receive the Morning Bid \u200cin your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website, and you can follow us \u200bon LinkedIn and X. <\/p>\n

Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is \u200bcommitted to integrity, independence, and freedom from bias. <\/p>\n

(By Anna Szymanski; Additional writing by Al Reed) <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

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