Morning Money — September 17, 2026
The big story this morning is interest rates. The U.S. Federal Reserve raised rates by 0.25% yesterday — its first hike in more than three years — taking its benchmark rate to 3.75%–4.00%. More importantly, the Fed signalled that additional hikes may be coming as inflation remains stubborn. For Canadians, that matters even though the Bank of Canada sets its own policy: higher U.S. rates can keep upward pressure on bond yields and borrowing costs here, while making it harder for the Bank of Canada to ignore inflation if price pressures persist.
Markets are taking the tougher Fed surprisingly well this morning. TSX futures were up about 0.7%, S&P 500 futures gained roughly 0.8%, and European stocks were also higher. Gold rebounded more than 1% to around US$4,309, while oil pulled back but remained above US$100 as Saudi supply eased some immediate concerns. The TSX is trying to rebound after closing yesterday at its lowest level since July 31.
What to watch: Canadian producer-price data arrives today, but the bigger question is whether yesterday’s Fed hike becomes the start of a new tightening cycle. Markets are already assigning roughly even odds to another hike in October.
