# Fed's September Rate Hike Locks In Tightening Cycle as Dollar Support Fades

By Enna Lee

Canonical URL: https://www.tokenpost.com/news/investing/23673
Published: 2026-09-24T10:45:49.000Z
Updated: 2026-09-24T10:45:49.000Z

The Federal Reserve's September rate hike locked in the current tightening cycle, while tighter policy across central banks weakened support for the U.S. dollar and shifted currency positioning toward the Japanese yen.

Six of the seven voting Federal Reserve officials took a hawkish stance. The policy rate stands at 3.75%-4.00%, reinforcing the central bank's restrictive policy bias.

Kashkari, Musalem and Goolsbee said inflation remains broad-based and that demand-side pressures are real. The Bank of Japan raised its policy rate, with another hike expected in the fourth quarter.

The shift toward tighter policy among central banks was accompanied by changes in leveraged-fund positioning. Funds moved to net long positions in the Japanese yen, while sterling long positions were unwound.

The Securities and Exchange Commission approved an exemption for tokenized stocks. Bitcoin ETF flows were near the 99th percentile, with seasonal buying expected in the fourth quarter.

Strategy resumed purchases, buying 950 Bitcoin (BTC) for $75.7 million.