What the US’s first rate hike in three years means for the world and China
The Federal Reserve unanimously raised its interest-rate range from 3.5%-3.75% to 3.75%-4%, citing inflation that is too high and has lasted too long. Donald Trump had urged cuts but backed Kevin Warsh after the decision while attacking the board. The article contrasts US imported inflation with China’s weak demand and low inflation, warning that a wider rate gap makes Chinese easing riskier.
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BBC ChineseOriginal★★★★☆2026-09-17 06:54
Treasury yields move lower after Fed kicks off hiking cycleTreasury yields moved lower after the Federal Reserve raised interest rates for the first time since 2023, beginning a new hiking cycle.
The Fed is hiking again — and the rest of the world could feel the squeezeThe Federal Reserve is raising interest rates again, with effects that could extend well beyond the United States and put pressure on economies elsewhere.
- Shares edge higher as Fed hikes rates and dollar jumps with short-term yields
Asian shares edged higher on Thursday as investors bet the Federal Reserve was finally moving ahead of inflation. Its first rate hike in more than three years helped calm a global bond selloff that had driven long-term yields sharply higher.
Hong Kong stocks fall after Fed raises rates and signals further tighteningHong Kong and mainland Chinese stocks fell on Thursday after the US Federal Reserve delivered its first interest-rate increase in three years and indicated that additional tightening remained possible. The Hang Seng Index was down 0.8 per cent at 24,537.30 by 9.30am, while the Hang Seng Tech Index fell 0.5 per cent and the CSI 300 dropped 0.2 per cent.
- Fed officials unanimously raise key rate by a quarter point for first time in more than three years
Members of the Federal Open Market Committee unanimously voted to lift the Fed’s key overnight bank lending rate by a quarter point, seeking to bring inflation down. It was their first unanimous rate hike in more than three years.
US Fed hikes rates for first time since 2023 as inflation stays stickyThe Federal Reserve raised its policy rate by 25 basis points to 3.75%-4%, its first increase since July 2023, citing persistently elevated inflation. The decision passed unanimously, 12-0. Analysts viewed the hawkish move as leaving another hike possible before year-end, while Chair Kevin Warsh avoided committing to a prolonged tightening cycle and defended Fed independence amid Donald Trump's calls for cuts.
US Federal Reserve defies Trump with interest rate hikeThe US Federal Reserve has raised its key interest rate for the first time in three years in an effort to reduce high inflation. The decision could set up a confrontation between Chair Kevin Warsh and President Donald Trump, who has repeatedly urged the central bank to cut rates. The programme also covers France extending fuel subsidies and Hong Kong aligning with Beijing’s economic vision.
US interest rates raised for first time in three yearsThe Federal Reserve unanimously raised interest rates to 3.75%-4% from 3.5%-3.75%, its first increase in more than three years. Chair Kevin Warsh said inflation had been too high for too long, while President Donald Trump called for rates of 1% or less.
Trump demands 1% or lower interest rate after first Fed hike since 2023President Donald Trump called on the Federal Reserve to cut interest rates to 1% or less, just hours after the central bank announced its first rate increase since 2023.
Bitcoin, ether swing after unanimous quarter-point Fed rate hike as Warsh takes aim at inflationBitcoin and ether whipsawed after the Federal Reserve unanimously raised interest rates by a quarter point, its first hike in more than three years. Warsh focused on inflation.
Trump demands lower rates after Fed hikes to tackle ‘too high’ US inflationDonald Trump is demanding lower interest rates after the Federal Reserve raised them to address inflation he considers too high in the United States. Trump has repeatedly clashed with the Fed over its rate policy and called for borrowing costs of 1% or less.
- U.S. Federal Reserve raises interest rates for first time in 3 years
The Federal Reserve raised interest rates, saying the move was intended to help return inflation to its 2 per cent target. It was the first policy shift by the new Fed chief, who took office in late May after being selected by Trump amid expectations he would cut rates.
- Key Takeaways From Fed Decision to Raise Interest Rates
These are the key points from the Federal Reserve’s decision on Wednesday to raise interest rates.
