U.S. dollar gets strong bid in reaction Fed's 25 bps rate hike

Watch on YouTube ↗  |  September 16, 2026 at 18:38  |  2:30  |  CNBC
Speakers
Rick Santelli — On-Air Editor, CNBC Business News

Summary

CNBC's Rick Santelli reacts to the Fed's 25 basis point rate hike by focusing on the bond market. He notes short-end Treasury yields are moving higher, the 2s10s curve is flattening, and the 10-year yield is hovering near 5%. He also highlights a strong bid in the dollar index and says the stock market's initial reaction is not clearly directional.

  • Fed's 25 bps rate hike prompts a muted initial stock reaction.
  • Rick Santelli focuses on rising short-end Treasury yields.
  • The 2-year yield moves back up and leads the curve.
  • The 2s10s Treasury curve flattens as the 10-year hovers near 5%.
  • The U.S. dollar index gets a strong bid after the Fed decision.
  • Strong Atlanta Fed GDP and retail sales data are noted as economic supports.
  • Middle East tensions are cited as a complication for the rate outlook.
Ideas
Rick Santelli On-Air Editor, CNBC Business News 1:29
Two-year yields rising on more Fed hikes
The two-year Treasury yield has moved back up and is the most aggressive part of the curve, because some Fed officials are still looking for more hikes, which is pushing short-end yields higher.
2-Year Treasury Yield HIGH
Rick Santelli On-Air Editor, CNBC Business News 1:35
Curve flattening as short-end yields rise
The 2s10s curve is flattening because the short end is being pushed higher by hawkish Fed expectations while the 10-year yield is not falling, making the 2-year rather than the 10-year the driver.
2s10s Treasury curve flattener HIGH
Rick Santelli On-Air Editor, CNBC Business News 1:44
Ten-year yield stays elevated near 5%
The 10-year Treasury yield is not going down after the Fed hike and continues to hover near 5%, keeping the long end elevated and making the 5% level a key marker to watch.
10-Year Treasury Yield MED
Rick Santelli On-Air Editor, CNBC Business News 2:12
Dollar index bid on higher short-term yields
The U.S. dollar index is getting a strong bid after the Fed decision and higher short-term rates, and this move makes sense after the dollar had been counterintuitive to many recent interest-rate moves.
UUP MED
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This CNBC video, published September 16, 2026, features Rick Santelli discussing 2-Year Treasury Yield, 2s10s Treasury curve flattener, 10-Year Treasury Yield, UUP. 4 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Rick Santelli  · Tickers: 2-Year Treasury Yield, 2s10s Treasury curve flattener, 10-Year Treasury Yield, UUP