Fed Rate Increase Provides Relief to Bond Investors -- WSJ

By Sam Goldfarb

The Federal Reserve's unanimous vote to raise rates is a relief to markets, going a long way to removing concerns about the central bank's willingness to fight inflation under new chairman Kevin Warsh.

The new Fed chief spooked the bond market in July after the Fed's last meeting when he seemed hesitant about raising rates despite expressing concern about inflation. He took a big step toward allaying concerns last month at the Fed's annual Jackson Hole conference. But actually raising rates follows through on the promise of that speech.

Yields on longer-term Treasurys, which rise when bond prices fall, ticked slightly higher after the Fed decision. But the 10-year yield was notably holding below 5% after climbing above that threshold earlier in the week.

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(END) Dow Jones Newswires

September 16, 2026 14:21 ET (18:21 GMT)