# 10-year Treasury yield hits 5% as Fed hikes rates

> The Fed raised rates for the first time in three years as Chairman Warsh warned inflation remains stubbornly high.
- Title: 10-year Treasury yield hits 5% as Fed hikes rates · CNBC
- Summary: The Fed raised rates for the first time in three years as Chairman Warsh warned inflation remains stubbornly high. The Fed hiked rates to 3.75%-4% and…
- Keywords: treasury yields, federal reserve, kevin warsh, interest rates, inflation, rate hike, 10-year treasury, 2-year treasury, fomc, monetary policy, oil prices, u.s.-iran war
- Source: CNBC — https://cnbc.com/2026/09/16/treasury-yield-bond-market-fed-decision.html
- Author: Fred Imbert,Sean Conlon,Chloe Taylor
- Published: 2026-09-16T08:58:16+00:00
- Read time: 1 min
- Topics: treasury yields, federal reserve, kevin warsh, interest rates, inflation, rate hike, 10-year treasury, 2-year treasury, fomc, monetary policy, oil prices, u.s.-iran war
## Treasury yield breaks 5% barrier
The 10-year Treasury note yield climbed above 5% after the Fed raised rates. The 2-year yield jumped more than 7 basis points to 4.738%.
## Fed hikes for first time since 2023
The Fed raised its overnight lending rate to 3.75%-4%, up from 3.5%-3.75%. It's the first rate increase in three years.

> Inflation remains elevated. Today's policy action will support a timelier return to the Committee's 2 percent goal.
## Oil prices fuel inflation worries
A sharp rise in oil prices driven by the U.S.-Iran war has started appearing in recent inflation reports, including August's consumer price index.
## Warsh warns inflation too stubborn
Fed Chairman Kevin Warsh told reporters that summer inflation readings show underlying trends haven't improved meaningfully.

> Inflation is too high and has been for too long.
## More rate hikes likely this year
Goldman Sachs expects one more rate hike in December, with the Fed likely skipping October due to proximity to midterm elections.

> The Fed has signaled it does not at this stage envisage an aggressive tightening cycle.
## Key takeaway

The Fed hiked rates to 3.75%-4% and signaled more increases ahead as inflation stays elevated, pushing the 10-year Treasury yield above 5%.