The Federal Reserve raised interest rates and signaled that additional increases are likely to follow, Il Sole 24 ORE reported on Thursday, September 17, 2026. The decision places the central bank, led by Warsh, at odds with President Trump. According to Il Sole 24 ORE, the Fed chair framed the move as a challenge to the president's position on monetary policy.
The Fed's stance rests on its assessment that inflation remains elevated. Corriere della Sera reported that the central bank expects rates to stay near 4 percent even in 2027, based on that inflation outlook. The rate increase follows a similar move by the European Central Bank, according to MutuiOnline.it, which also noted the effect on mortgage payments.
The decision carries consequences beyond the United States. Milanofinanza.it reported that the tightening could strengthen the dollar and push bond yields higher, with possible spillover effects on global markets. Ansia.it reported mixed trading in Asia after the Fed announcement, while European markets were expected to open higher.
The Fed's own projections suggest it does not expect to bring rates down soon. Corriere della Sera reported that rates around 4 percent remain the central bank's expectation through 2027, tied to its view that inflation is not yet under control.
What to watch next: whether the Fed follows through on further increases, and how the Trump administration responds to a central bank that has publicly defied it.