Central banks tighten policy amid energy price shocks

Major central banks are pursuing tightening paths as energy price shocks drive inflation concerns. Policymakers worldwide weigh further rate hikes while navigating economic risks.

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Federal Reserve Chairman Kevin Warsh holds a press conference following a two-day meeting of the Federal Open Market Committee (FOMC) at the Federal Reserve in Washington, D.C., U.S. September 16, 2026. REUTERS/Evan Vucci

Major global central banks shifted to a tightening stance during Wednesday morning trading amid energy price shocks, with the Federal Reserve recalibrating policy. Traders are pricing in more aggressive rate hikes than projected in official central bank forecasts.

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