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5 Things to Know Today: Fed Decision Looms, TSX Slides, Gas Prices Climb (Sept 16)

  Wednesday, September 16, 2026 The Fed's biggest decision in years lands at 2 p.m. ET today, the TSX and loonie are both licking their wounds, and drivers are paying more at the pump despite the gas tax holiday. Here's what's moving your money this morning. 1. The Fed Decides on Rates Today — and a Hike Looks All but Certain The Federal Reserve announces its rate decision at 2 p.m. ET, with Chair Kevin Warsh's press conference to follow at 2:30 p.m. Markets have priced in over 90% odds of a 25-basis-point hike, which would lift the target range to 3.75%–4.00% from 3.50%–3.75%, where it's sat since December. It would be the first hike of this cycle, driven by inflation still running above target even as the labour market holds up. What it means for you: A Fed hike widens the gap with the Bank of Canada's 2.25% rate, which tends to pressure the loonie lower and nudge Canadian bond yields — and by extension fixed mortgage pricing — upward. Watch for the reaction ...
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Wall Street Rallies Despite Fed's Tapering Plans

 


Stocks rose on Friday, extending their gains for the week, as investors shrugged off the hawkish tone of Federal Reserve Chair Jerome Powell's testimony to Congress. Powell signaled that the Fed is ready to start tapering its bond purchases as soon as November, and that interest rate hikes could follow sooner than expected. However, he also acknowledged that the economic recovery is still facing headwinds from the delta variant of the coronavirus and supply chain disruptions.

The Dow Jones Industrial Average climbed 0.7%, or 238 points, to close at 35,677. The S&P 500 gained 0.8%, or 34 points, to end at 4,544. The Nasdaq Composite advanced 0.9%, or 139 points, to finish at 15,212. All three major indexes posted weekly gains of more than 1%.

The dollar weakened against a basket of major currencies, as traders reduced their bets on a faster pace of monetary tightening. The dollar index fell 0.3% to 93.38. The yield on the 10-year Treasury note edged lower to 1.45%, after hitting a three-month high of 1.54% on Thursday.

Wall Street analysts said that Powell's comments were largely priced in by the market, and that investors are focusing on the strong earnings outlook and the prospects of more fiscal stimulus from Washington. They also noted that the Fed's tapering plans are contingent on the economic data, which could change depending on the evolution of the pandemic and inflation.

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