The Fed raised rates to 3.75–4.00% — and gold fell $100
The Federal Reserve raised its target range by 25 basis points on 16 September, its first increase since July 2023, in a unanimous 12–0 vote. Chair Kevin Warsh said inflation is still too high. Gold lost about $100 within the hour. Here is exactly what happened, and what each part of it means for your positions.
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What the Fed decided
Published minutes after the statement and updated after the press conference. Every line is from the Fed's own release or the press conference.
Which of our four scenarios happened
Scenario 2: a 25 bp hike with a hawkish dot plot. This page put it at 25–35% and said it was the biggest risk for gold, with a fast 1–2% drop. That is what the market delivered — the dots, not the hike, did the damage.
How the news moves gold
Gold is the market this decision moves most, so it comes first. Live price in the bar above; below, the week from our own feed and what each outcome usually does to it.
Why today matters
The Fed has held its target range at 3.50–3.75% at every meeting this year. Today the market expects it to raise — a 25 basis-point step to 3.75–4.00%, the first increase since July 2023 and a reversal of the cutting cycle that ran from September 2024 to December 2025.
What changed is inflation. August CPI rose 0.4% in the month and 3.4% on the year, core inflation came in hotter than forecast, and gasoline alone (+3.9% in August) explained more than a third of the monthly rise. The jobs side gives the Fed room: payrolls +162,000, unemployment steady at 4.1%, wages +3.1% on the year. The moment that CPI printed, hike odds jumped from under 70% to nearly 90%.
It is also political. The White House has publicly pressed the Fed to cut. A hike today is the new Chair choosing the inflation target over that pressure — which is why the press conference, not the statement, is the event.
The timeline (Mecca time, GMT+3)
The vote, the new target range and the wording on inflation. The first move usually happens within seconds.
The quarterly forecasts and the dot plot: where each member sees rates at the end of 2026 and 2027. A hike with dots pointing to more hikes is a very different message from a hike with flat dots.
About an hour of questions. Listen for: one-and-done or the start of a series; how he describes energy-driven inflation; the balance sheet; and how he answers the question about the White House.
Markets price a meaningful chance of a second move by December. Tonight's dots decide whether that pricing rises or falls.
Who speaks
Sworn in on 22 May 2026 as the 17th Chair, succeeding Jerome Powell. A Fed governor from 2006 to 2011, he has said inflation is still above the 2% target and broad across categories. At 21:30 he takes questions for about an hour; the market usually moves more on his answers than on the statement itself.
The four scenarios
Probabilities are the market's, not ours. The reactions are the typical first move; the press conference can reverse any of them.
| Scenario | Odds | Gold | US dollar | US stocks | What it means |
|---|---|---|---|---|---|
| Hike 25 bp, calm tone “inflation, but we are near done” | ≈ 50–60% | Dip, then recovers | Firmer, then fades | Relief bounce | Mostly priced. Watch Warsh; the statement alone changes little. |
| ✔ THIS HAPPENED Hike 25 bp, hawkish dots more hikes signalled for 2026–27 | ≈ 25–35% | ▼ 1–2% fast | ▲ broad rally, USD/JPY up | ▼ growth stocks hit | The dollar and yields lead; gold's biggest risk tonight. |
| Hold at 3.50–3.75% the surprise | ≈ 10% | ▲ sharp spike | ▼ sells off | ▲ rally | Goldman's call. Gold and stocks jump, the dollar drops; watch for a reversal if Warsh sounds hawkish anyway. |
| Hike 50 bp tail risk | < 5% | ▼ heavy | ▲ jumps | ▼ sharp | Not priced. Liquidity thins, spreads widen, stops get hit — the night to be small. |
The other markets going in
Seven-day picture, hourly closes from TNFX's own MT5 pricing — not a third-party embed. Refreshed each time this page is rebuilt.
For traders in the Arab region
A $50 move in the ounce is about $1.60 per gram of 24k gold — the size of swing that has happened inside the press conference on recent Fed nights. The riyal, dirham and Jordanian dinar are pegged to the dollar, so gold priced in them moves exactly with gold in dollars.
A hike strengthens the dollar and lifts the cost of dollar borrowing across the region; a hold does the opposite. Neither shows up in shop prices tonight — but tonight sets the direction for the months ahead.
- Spreads widen for a few minutes around 21:00 and 21:30 at every broker. Pending orders can fill worse than the price you see.
- On Turbo leverage a $20 move in gold is a large share of the margin on a small account. Size for a $50–110 range — that is what the last three Fed nights delivered.
- Stops and take-profits placed before the release execute at market on the release. Decide before 20:55 whether you want to be in at all.
What to listen for from Warsh
- One and done, or a series? The single most important sentence of the night.
- The dots. Median for end-2026 and end-2027 — do they rise?
- Energy. Does he treat the gasoline-driven part of inflation as temporary or as broad?
- Dissents. A split vote (members wanting a hold) softens the message.
- The White House question. How he answers it moves the dollar as much as the decision.
What happens next
The next meetings are 28 October and 9 December. The dots now point to at least one more hike this year, so the question for gold is no longer whether the Fed hikes but how fast inflation falls. Watch the October CPI print: a soft one takes the second hike back off the table.
Sources
- CME FedWatch via GrowBeansprout (84.1%, 14 Sep)
- centralbank.watch (91%)
- NBC News — August CPI
- CNBC — the White House and the Fed
- Federal Reserve — September calendar
- CNN — Warsh sworn in
Common questions
What time is the Fed decision?
21:00 Mecca time (GMT+3) on Wednesday 16 September 2026 — 14:00 in New York. Chair Kevin Warsh's press conference follows at 21:30.
What is the Fed expected to do?
Raise the target range by 25 basis points to 3.75–4.00%. Markets price roughly 85–90% for a hike; a hold is the surprise scenario.
What does a Fed hike do to gold?
Usually down at first, because a hike lifts the dollar and bond yields. The size depends on the guidance: a hawkish dot plot has produced the largest drops, while a one-and-done message often sees gold recover within the press conference.
Why would the Fed hike now?
August inflation was 3.4% on the year with core prices rising faster than forecast, while unemployment is steady at 4.1% — the Fed can tighten without a weak labour market stopping it.
Who is Kevin Warsh?
The 17th Chair of the Federal Reserve, sworn in on 22 May 2026 after Jerome Powell, and a Fed governor from 2006 to 2011.
Can I trade the decision on TNFX?
Yes — gold, forex, indices, oil and crypto CFDs on MT4 and MT5. Spreads widen briefly at 21:00 and 21:30; the risk points above matter more than usual.