Why the Fed Started Raising Rates Again

Federal Reserve rate hike 2026: why did the Fed raise rates again? On 16 September 2026, the Fed voted 12–0 to lift rates to 3.75%–4%, its first hike since July 2023, under a chair chosen by a president demanding cuts. This video rebuilds that decision step by step.We cover the Iran war oil shock and why central banks usually "look through" supply shocks. We look at the 65 months of above-target inflation that changed the Fed's thinking, Kevin Warsh's Jackson Hole speech, and the July dissents. We also cover the political pressure from the White House and what the hike means for mortgage rates, savings and the 10-year Treasury yield. Then we give the strongest case that the Fed got it wrong, from economists who argue you should never hike into an energy shock.No hype, just the data, the mechanics and both sides of the argument. ⏱️ Chapters 00:00 The vote nobody expected 01:07 Six months, one U-turn 06:16 The rulebook says look through 12:17 Sixty-five months 17:54 "Not restrictive": the economy that didn't need help 22:45 The chair who was supposed to cut 28:33 The case against the hike 34:12 Where it lands: mortgages, savings, bonds 37:11 So why did the Fed raise rates? 💬 Do you run a business or work somewhere that has changed how it prices since 2021? Tell us in the comments, along with what you'd like us to cover next. 📚 Key sources: Federal Reserve FOMC statement, press conference and Summary of Economic Projections (16 Sep 2026); BLS CPI and Employment Situation reports; BEA GDP and Personal Income and Outlays (30 Sep 2026); University of Michigan Surveys of Consumers; Freddie Mac PMMS; Chicago Fed (Goolsbee, 21 Sep 2026); Bernanke, Gertler and Watson (1997). The full source list is in the pinned comment. ⚠️ This video is for educational purposes only and is not financial or investment advice. Speak to a qualified adviser before making borrowing, saving or investment decisions. #FederalReserve #InterestRates #Inflation #FedRateHike #KevinWarsh #Economics #MortgageRates