Fed’s 25-Basis-Point Rate Hike Draws Inflation Warnings From Cook and Warren

Sep 30, 2026 09:11 (24d ago)

The Fed raised interest rates 25 basis points as Cook linked persistent inflation to AI infrastructure demand and Warren criticized the higher borrowing costs.
About $2 trillion in AI investment was announced, while Warren estimated roughly $2 billion in additional credit-card interest charges over the next year.
The target range reached 3.75%-4.00%; August PCE inflation rose 3.4% annually, and markets priced a 61.8% chance of no October hike.

Federal Reserve Governor Lisa D. Cook linked inflation above the central bank’s 2% target to strong demand for AI infrastructure, while Sen. Elizabeth Warren (D-Mass.) said the Fed’s 25-basis-point rate increase would raise borrowing costs for American families. The records describe the rate as lifting the target range to 3.75%-4.00%, with the older account identifying a unanimous FOMC decision and the newer account calling it the first increase since 2023. About $2 trillion in AI investment has been announced but only a small fraction deployed, while Warren said credit-card users would face roughly $2 billion in additional interest charges over the next year. August PCE inflation rose 0.3% month over month and 3.4% annually, with energy prices up 2.3%.