Branch² Intelligence

Ed Yardeni, President of Yardeni Research, predicts that the Federal Reserve will raise interest rates by 25 basis points in September to restore its credibility regarding inflation, despite concerns over stagflation.

IN · 2026-08-31

Key takeaway

Federal Reserve expected to raise interest rates by 25 basis points in September.

  1. Step 1 · The triggerthe Fed signals a 25 basis point rate hike to manage inflation credibility
  2. Step 2 · Knock-onUS interest rates rise, impacting global financial conditions
  3. Step 3 · Knock-onIndian lenders adjust their rates in response to US monetary policy
  4. Step 4 · Knock-onIndian SMEs face higher borrowing costs as loan rates increase
  5. Step 5 · Reaches youSMEs may see tighter cash flow as financing costs rise, impacting operational budgets

The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.

Source: CNBC TV18 (Markets)

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This is automated analysis for information only. It is not investment advice, not a recommendation, and not a solicitation to buy or sell any security. Branch² is not authorised or regulated. Do your own research.