On September 16, 2026, the Federal Reserve raised the benchmark federal funds rate by 25 basis points, setting the target range at 3.75%-4%. This marks the first rate increase since July 2023, as Fed Chair Kevin Warsh labeled current inflation levels unacceptable and reiterated the goal of a 2% target.
Following the announcement, Bitcoin remained stable, trading between $76,000 and $76,800. While the cryptocurrency maintained support from spot demand, Bitcoin ETFs experienced significant outflows totaling hundreds of millions in net redemptions.
Traditional US equity markets, including the S&P 500, Nasdaq, and Dow, rebounded on September 17. This recovery was supported by a decline in oil prices, which helped alleviate concerns regarding inflation expectations.
The Federal Reserve's median dot plot indicates the possibility of one additional 25 basis point hike before the end of 2026. Meanwhile, the US Senate recently rejected the Clarity Act, which aimed to establish a regulatory framework for digital assets.
