09-22-2026 - Last week’s 25bp Fed hike: a move against inflation in the midst of a resilient economy

Highlights from the FOMC Statement Summary:

•     Economy: While uncertainty remains elevated, domestic spending has been resilient, productivity growth is strong, and capital investment is robust.

•     Inflation: Inflation remains elevated. The September 16 policy action will support a timelier return to the 2 percent goal.

•     Labor Market: Job gains have kept pace with the workforce, and the unemployment rate has changed little.

Market Reaction Snapshot (as of 4:00 p.m. ET on September 16) — ∆ resulting from Announcement and Press Conference:

•     2Y Treasury Yield: 4.73% (↑ 12 bps)

•     10Y Treasury Yield: 5.01% (↑ 6 bps)