Week of 14 - 18 September 2026 | The Fed raises policy rates

In this edition of Amundi's Weekly Market Directions: 

  • The Fed raised rates for the first time since 2023, bringing them into the 3.75% - 4% range. The decision was unanimous. 
  • In the statement, the economy was described as solid, with domestic demand resilient despite elevated uncertainty related to geopolitics, while inflation remains elevated.
  • US bonds saw a divergence, with shorter-dated yields rising while longer-dated yields fell, supported by a retreat in oil.
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Monica Defend

Monica Defend

Head of Amundi Investment Institute

The Fed’s September hike was primarily an insurance and credibility measure. Significant geopolitical uncertainty and scrutiny from bond markets could influence its actions going forward.

Monica Defend, Head of Amundi Investment Institute

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Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 21 September 2026. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.
 

Date of first use: 21 September 2026

Doc ID: 5943354