21 days ago
This has been a history-packed year for Wall Street. The Dow Jones Industrial Average (DJINDICES:^DJI), S&P 500 (SNPINDEX:^GSPC), and Nasdaq Composite (NASDAQINDEX:^IXIC) have all catapulted to several new highs, and Fed Chair Kevin Warsh was sworn in as only the 17th head of the Fed on May 22.
But the most game-changing event of them all might be Warsh and the Federal Open Market Committee (FOMC) kicking off only the fourth interest rate-hiking cycle of the 21st century on Sept. 16. Fed Chair Warsh and 11 other FOMC colleagues voted unanimously (12-0) to raise the federal funds target rate by 25 basis points to 3.75%-4.00%.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Kevin Warsh and the FOMC just shifted to a rate-hiking cycle. Image source: Official Federal Reserve Photo.
President Donald Trump hasn't been shy about voicing his displeasure with the FOMC's stance on interest rates. But in Warsh's comments to the press following the Sept. 15-16 FOMC meeting, he indirectly fired back at Donald Trump's ongoing interest rate critiques.
#rate #sept
But the most game-changing event of them all might be Warsh and the Federal Open Market Committee (FOMC) kicking off only the fourth interest rate-hiking cycle of the 21st century on Sept. 16. Fed Chair Warsh and 11 other FOMC colleagues voted unanimously (12-0) to raise the federal funds target rate by 25 basis points to 3.75%-4.00%.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Kevin Warsh and the FOMC just shifted to a rate-hiking cycle. Image source: Official Federal Reserve Photo.
President Donald Trump hasn't been shy about voicing his displeasure with the FOMC's stance on interest rates. But in Warsh's comments to the press following the Sept. 15-16 FOMC meeting, he indirectly fired back at Donald Trump's ongoing interest rate critiques.
#rate #sept
22 days ago
WASHINGTON (AP) — Most Federal Reserve officials expect that another interest rate increase will likely be needed this year to combat inflation, according to minutes released Wednesday from the central bank's most recent meeting.
The officials unanimously agreed that inflation was still elevated and had not made much progress toward their 2% target in recent months, the minutes said. The Fed increased its key interest rate at the Sept. 15-16 meeting by a quarter-point to about 3.9%, its first increase in three years.
The increase defied President Donald Trump's repeated calls for the Fed to cut rates and prompted the president to criticize the Fed's rate-setting committee, though he still expressed support for Chairman Kevin Warsh, whom he appointed earlier this year. The rate increase comes as Americans are already struggling with high costs for groceries, gas and housing, and as affordability has taken on a leading role in the upcoming midterm elections, just seven weeks away.
Longer-term interest rates for mortgages and other borrowing have also jumped in the past few months for a range of reasons, including rising government debt, heavy borrowing by tech firms to finance data center construction, climbing oil and gas prices, and signs that growth and inflation remain elevated. The Fed's rate hike has likely played only a limited role in the increase.
Still, key policymakers have said since the meeting that the Fed can take some time to monitor the economy and the impact of last month's rate hike before making another move. Wall Street investors now forecast the Fed will keep its rate unchanged at its next meeting Oct. 28-29, according to futures pricing, and raise it when they meet in December.
#officials
The officials unanimously agreed that inflation was still elevated and had not made much progress toward their 2% target in recent months, the minutes said. The Fed increased its key interest rate at the Sept. 15-16 meeting by a quarter-point to about 3.9%, its first increase in three years.
The increase defied President Donald Trump's repeated calls for the Fed to cut rates and prompted the president to criticize the Fed's rate-setting committee, though he still expressed support for Chairman Kevin Warsh, whom he appointed earlier this year. The rate increase comes as Americans are already struggling with high costs for groceries, gas and housing, and as affordability has taken on a leading role in the upcoming midterm elections, just seven weeks away.
Longer-term interest rates for mortgages and other borrowing have also jumped in the past few months for a range of reasons, including rising government debt, heavy borrowing by tech firms to finance data center construction, climbing oil and gas prices, and signs that growth and inflation remain elevated. The Fed's rate hike has likely played only a limited role in the increase.
Still, key policymakers have said since the meeting that the Fed can take some time to monitor the economy and the impact of last month's rate hike before making another move. Wall Street investors now forecast the Fed will keep its rate unchanged at its next meeting Oct. 28-29, according to futures pricing, and raise it when they meet in December.
#officials
24 days ago
Megan's aunt's will leaves each child somewhere between $700K and $1M with no trust, handing full control to each child at 18 with no restrictions.
Withdrawing $70,000 a year from a $700,000 inheritance exhausts the funds by age 36, leaving an 18-year-old with nothing by midlife.
Delony and Warshaw urge Megan to push for a phased trust and spend the next 12 years building her children's financial discipline before any payout arrives.
Building a portfolio and living off one are two completely different skills, and almost ***** ody teaches the second. This problem is what The Definitive Guide to Retirement Income helps, and it is free today. Read more here. (Sponsor)
Even "the greatest kid on the planet" can "get off the rails real quick" when given a fortune at 18. Dr. John Delony said this on The Ramsey Show on October 2, 2026, where he was co-hosting with Jade Warshaw. He was talking to a Boston mother named Megan who was never supposed to know what was coming.
#delony
Withdrawing $70,000 a year from a $700,000 inheritance exhausts the funds by age 36, leaving an 18-year-old with nothing by midlife.
Delony and Warshaw urge Megan to push for a phased trust and spend the next 12 years building her children's financial discipline before any payout arrives.
Building a portfolio and living off one are two completely different skills, and almost ***** ody teaches the second. This problem is what The Definitive Guide to Retirement Income helps, and it is free today. Read more here. (Sponsor)
Even "the greatest kid on the planet" can "get off the rails real quick" when given a fortune at 18. Dr. John Delony said this on The Ramsey Show on October 2, 2026, where he was co-hosting with Jade Warshaw. He was talking to a Boston mother named Megan who was never supposed to know what was coming.
#delony
24 days ago
It's been a year of historic change on Wall Street. We've witnessed the Oracle of Omaha, Warren Buffett, retire as CEO of Berkshire Hathaway (NYSE:BRKA)(NYSE:BRKB), stood in awe at the largest-ever initial public offering, and watched the Dow Jones Industrial Average (DJINDICES:^DJI), S&P 500 (SNPINDEX:^GSPC), and Nasdaq Composite (NASDAQINDEX:^IXIC) launch to several record highs.
But the biggest change of all has been the swearing in of a new Fed chair. On May 22, President Donald Trump's handpicked successor to Jerome Powell, Kevin Warsh, became only the 17th head of the central bank.
Missed AI's "Act 1"? Act 2 Could Be 14x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our **** ysts, we're only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Image source: Official White House Photo by Daniel Torok.
President Trump expected Warsh to guide the Federal Open Market Committee (FOMC) to lower interest rates, but in September, the exact opposite occurred: the FOMC kicked off only its fourth rate-hiking cycle of the 21st century. Now, Donald Trump is throwing his new Fed chair, along with the FOMC, under the bus over interest rates.
#only #NYSE #president #warsh
But the biggest change of all has been the swearing in of a new Fed chair. On May 22, President Donald Trump's handpicked successor to Jerome Powell, Kevin Warsh, became only the 17th head of the central bank.
Missed AI's "Act 1"? Act 2 Could Be 14x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our **** ysts, we're only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Image source: Official White House Photo by Daniel Torok.
President Trump expected Warsh to guide the Federal Open Market Committee (FOMC) to lower interest rates, but in September, the exact opposite occurred: the FOMC kicked off only its fourth rate-hiking cycle of the 21st century. Now, Donald Trump is throwing his new Fed chair, along with the FOMC, under the bus over interest rates.
#only #NYSE #president #warsh
1 month ago
In the end, Kevin Warsh's Federal Reserve acquitted itself well. For all the uncertainty he had sparked at the previous meeting of the Federal Open Market Committee, when he refused to provide any indication of what he was prepared to do to tame stubborn inflation, the chair on Wednesday presided over a unanimous decision to raise interest rates for the first time in three years.
"Today's action starts to show that we're serious about this," he said at the press conference after the meeting, with "this" meaning inflation in excess of the Fed's 2% target for over five years. Welcome though it was, his embrace of economic orthodoxy nonetheless did little to dispel the Keystone Cops quality of governance in Donald Trump's US.
Warsh's resolve – raising rates just a few weeks before elections that will determine whether Republicans retain control of Congress – appeared even more resolute in the face of a veiled threat from White House economic adviser Kevin Hassett, who pointed out to his chums on Fox that "if you want an independent Fed, then one thing the Fed does is it stays out of the way of elections".
The central bankers' parsimonious comments in the press conference following the meeting made a sharp contrast with the more unhinged commentary from other members of the administration, including the president himself, who earlier this month celebrated the resilience of the labor market with a mind-boggling threat to "STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT" unless the Fed cut interest rates.
Trump has yet to turn on Warsh in the way he did on his predecessor, Jerome "numbskull" Powell. But the signs are ominous. After the rate hike, Trump went ballistic – spewing more of the random, incoherent thoughts that have become his trademark. "Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World," he wrote on social media, despite recalcitrant inflation and a budget deficit that is likely to exceed $2tn this year. He again demanded the powers that be to "LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!"
#rates #federal #states
"Today's action starts to show that we're serious about this," he said at the press conference after the meeting, with "this" meaning inflation in excess of the Fed's 2% target for over five years. Welcome though it was, his embrace of economic orthodoxy nonetheless did little to dispel the Keystone Cops quality of governance in Donald Trump's US.
Warsh's resolve – raising rates just a few weeks before elections that will determine whether Republicans retain control of Congress – appeared even more resolute in the face of a veiled threat from White House economic adviser Kevin Hassett, who pointed out to his chums on Fox that "if you want an independent Fed, then one thing the Fed does is it stays out of the way of elections".
The central bankers' parsimonious comments in the press conference following the meeting made a sharp contrast with the more unhinged commentary from other members of the administration, including the president himself, who earlier this month celebrated the resilience of the labor market with a mind-boggling threat to "STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT" unless the Fed cut interest rates.
Trump has yet to turn on Warsh in the way he did on his predecessor, Jerome "numbskull" Powell. But the signs are ominous. After the rate hike, Trump went ballistic – spewing more of the random, incoherent thoughts that have become his trademark. "Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World," he wrote on social media, despite recalcitrant inflation and a budget deficit that is likely to exceed $2tn this year. He again demanded the powers that be to "LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!"
#rates #federal #states
1 month ago
Federal Reserve Chair Kevin Warsh has revealed himself. If not a card-carrying monetarist, he is at least a camp follower. This represents a dramatic change at the Fed, where the past Chairman Jerome Powell repeatedly rejected the basic tenets of monetarism.
This is a welcomed earthquake. After all, there are almost no monetarists left in the world (except for us, and we've been fighting a lonely rearguard action for over 40 years). The Federal Reserve has rejected monetarism consistently — and on the record — because it preferred other models for understanding the economy. In academia, monetarism has been out of fashion for decades. But by his own words, a monetarist is now leading the central bank.
Just what is monetarism? It's a doctrine which holds that money has a major influence on both the level of ***** et prices, economic activity, and the price level. Any discussion of national income determination must, therefore, center on the quantity of money and the banking system, since banks produce most of the money in modern economies. When it comes to monetary policy, its objectives are best met by targeting the rate of growth of the money supply.
Today, most economists pooh-pooh monetarism. Money and banking are nowhere to be found in their macroeconomic models, or their discourses about the course of ***** et prices, economic activity, and prices. Indeed, their forecasting exercises are typically based on elaborations of Keynesian income-expenditure models that exclude money and banking.
If that's not enough, we think that the Fed's backroom staff, mostly Keynesian-leaning Democrats, don't want alignment with a philosophy usually affiliated with Milton Friedman, but that's another story. Just look at what Joe Biden said in 2020 about how the dean of monetarism wasn't "running the show anymore."
#monetarist
This is a welcomed earthquake. After all, there are almost no monetarists left in the world (except for us, and we've been fighting a lonely rearguard action for over 40 years). The Federal Reserve has rejected monetarism consistently — and on the record — because it preferred other models for understanding the economy. In academia, monetarism has been out of fashion for decades. But by his own words, a monetarist is now leading the central bank.
Just what is monetarism? It's a doctrine which holds that money has a major influence on both the level of ***** et prices, economic activity, and the price level. Any discussion of national income determination must, therefore, center on the quantity of money and the banking system, since banks produce most of the money in modern economies. When it comes to monetary policy, its objectives are best met by targeting the rate of growth of the money supply.
Today, most economists pooh-pooh monetarism. Money and banking are nowhere to be found in their macroeconomic models, or their discourses about the course of ***** et prices, economic activity, and prices. Indeed, their forecasting exercises are typically based on elaborations of Keynesian income-expenditure models that exclude money and banking.
If that's not enough, we think that the Fed's backroom staff, mostly Keynesian-leaning Democrats, don't want alignment with a philosophy usually affiliated with Milton Friedman, but that's another story. Just look at what Joe Biden said in 2020 about how the dean of monetarism wasn't "running the show anymore."
#monetarist
1 month ago
Kansas City Federal Reserve president Jeff Schmid said Friday that he supported the central bank's decision to raise interest rates this week and suggested that more rate hikes could be warranted, a view that was echoed by the rest of the central bank and Fed Chairman Kevin Warsh.
"The Fed has work to do on inflation, and this week's action was a step in that direction," Schmid said in a speech in Vail, Colo.
Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investments
The Federal Open Market Committee voted on Wednesday in a unanimous decision to raise its benchmark interest rate to the range of 3.75% to 4% from 3.5% to 3.75%, the first rate hike since July 2023
Schmid noted that inflation has run above the central bank's 2% target for over five years, and the most recent price readings suggest a pace trending above 3%. Inflation has jumped this year as oil and overall energy prices have leapt higher amid the conflict with Iran. Even when stripping out energy and food prices, so-called "core" inflation has also been sticky.
#interest
"The Fed has work to do on inflation, and this week's action was a step in that direction," Schmid said in a speech in Vail, Colo.
Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investments
The Federal Open Market Committee voted on Wednesday in a unanimous decision to raise its benchmark interest rate to the range of 3.75% to 4% from 3.5% to 3.75%, the first rate hike since July 2023
Schmid noted that inflation has run above the central bank's 2% target for over five years, and the most recent price readings suggest a pace trending above 3%. Inflation has jumped this year as oil and overall energy prices have leapt higher amid the conflict with Iran. Even when stripping out energy and food prices, so-called "core" inflation has also been sticky.
#interest
1 month ago
The big day that seemingly everyone had circled on their calendar for weeks, Sept. 16, lived up to the hype.
On Wednesday, Sept. 16, Fed Chair Kevin Warsh and the 11 other voting members of the Federal Open Market Committee (FOMC) raised the federal funds target rate by 25 basis points to a new range of 3.75%-4.00%. The first interest rate hike since July 2023 wasn't well-received by Wall Street, with the time-tested Dow Jones Industrial Average (DJINDICES:^DJI) tumbling more than 1%, and the broad-based S&P 500 (SNPINDEX:^GSPC) and innovation-powered Nasdaq Composite (NASDAQINDEX:^IXIC) edging lower.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
While Warsh's and the FOMC's actions are bound to raise questions and incite worry on Wall Street, nearly 36 years of history make clear what comes next for stocks.
Fed Chair Kevin Warsh and the FOMC just kicked off the first rate-hiking cycle in three years. Image source: Official Federal Reserve Photo.
#years #sept #chair
On Wednesday, Sept. 16, Fed Chair Kevin Warsh and the 11 other voting members of the Federal Open Market Committee (FOMC) raised the federal funds target rate by 25 basis points to a new range of 3.75%-4.00%. The first interest rate hike since July 2023 wasn't well-received by Wall Street, with the time-tested Dow Jones Industrial Average (DJINDICES:^DJI) tumbling more than 1%, and the broad-based S&P 500 (SNPINDEX:^GSPC) and innovation-powered Nasdaq Composite (NASDAQINDEX:^IXIC) edging lower.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
While Warsh's and the FOMC's actions are bound to raise questions and incite worry on Wall Street, nearly 36 years of history make clear what comes next for stocks.
Fed Chair Kevin Warsh and the FOMC just kicked off the first rate-hiking cycle in three years. Image source: Official Federal Reserve Photo.
#years #sept #chair
1 month ago
US stocks rebounded on Thursday as oil prices edged lower and a Fed rate hike on Wednesday offered some relief that the central bank was working to contain inflation.
The Dow Jones Industrial Average (^DJI) rose 0.6%, while the S&P 500 (^GSPC) climbed 1.1%. The tech-heavy Nasdaq Composite (^IXIC) jumped 1.7%, rebounding from a post-Fed-hike slump on Wednesday.
Stocks recovered as investors **** sed Federal Reserve Chairman Kevin Warsh's hawkish rhetoric, which **** ysts said helped restore the Fed's credibility on inflation. On Wednesday, the Federal Reserve raised interest rates by 25 basis points for the first time in three years and projected one more rate hike this year.
The decision drew the ire of President Trump, who called for lower interest rates and said he had spoken with Warsh ahead of the FOMC meeting. "You might as well vote with the board because it's not going to matter," Trump said he told Warsh.
Oil prices, meanwhile, ticked lower as US Energy Secretary Chris Wright said Saudi Arabia's East-West pipeline, which has become a key alternative route for oil stuck in the Strait of Hormuz, would be restored soon. Brent crude (BZ=F), the global benchmark, changed hands at $104 per barrel.
#reserve #Trump
The Dow Jones Industrial Average (^DJI) rose 0.6%, while the S&P 500 (^GSPC) climbed 1.1%. The tech-heavy Nasdaq Composite (^IXIC) jumped 1.7%, rebounding from a post-Fed-hike slump on Wednesday.
Stocks recovered as investors **** sed Federal Reserve Chairman Kevin Warsh's hawkish rhetoric, which **** ysts said helped restore the Fed's credibility on inflation. On Wednesday, the Federal Reserve raised interest rates by 25 basis points for the first time in three years and projected one more rate hike this year.
The decision drew the ire of President Trump, who called for lower interest rates and said he had spoken with Warsh ahead of the FOMC meeting. "You might as well vote with the board because it's not going to matter," Trump said he told Warsh.
Oil prices, meanwhile, ticked lower as US Energy Secretary Chris Wright said Saudi Arabia's East-West pipeline, which has become a key alternative route for oil stuck in the Strait of Hormuz, would be restored soon. Brent crude (BZ=F), the global benchmark, changed hands at $104 per barrel.
#reserve #Trump
1 month ago
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The Federal Reserve raised interest rates on Wednesday, marking its first hike in more than three years, in a move that will likely make borrowing more expensive while giving savers a modest boost.
Fed Chairman Kevin Warsh and the Federal Open Market Committee announced a widely expected quarter-point rate increase and indicated another to come.
The stock market's reaction to the Fed's announcement is likely to draw the most headlines, and John Shugar, a partner at Goldman Sachs, leans toward an optimistic scenario.
"You basically have a market where all of the heavy lifting has actually been done on the earnings side," Shugar said in an **** ysis. He points to "terrific opportunities" in various AI consumer sectors, though "over the next few weeks, we may have a lot more speed **** ps."
#shugar #reserve #kevin
The Federal Reserve raised interest rates on Wednesday, marking its first hike in more than three years, in a move that will likely make borrowing more expensive while giving savers a modest boost.
Fed Chairman Kevin Warsh and the Federal Open Market Committee announced a widely expected quarter-point rate increase and indicated another to come.
The stock market's reaction to the Fed's announcement is likely to draw the most headlines, and John Shugar, a partner at Goldman Sachs, leans toward an optimistic scenario.
"You basically have a market where all of the heavy lifting has actually been done on the earnings side," Shugar said in an **** ysis. He points to "terrific opportunities" in various AI consumer sectors, though "over the next few weeks, we may have a lot more speed **** ps."
#shugar #reserve #kevin
1 month ago
Stocks slid Wednesday afternoon after Federal Reserve Chair Kevin Warsh followed the central bank's first rate hike in three years with a press conference that hinted it wouldn't be the last.
The S&P 500 dropped 1%, heading toward its lowest close since July. The Dow Jones Industrial Average fell 1.7%, or more than 700 points, with financial shares leading the decline. The Nasdaq Composite fell 0.8%. The 10-year Treasury yield held near 5% a day after touching its highest level since 2007, and the dollar index climbed 0.6% to its strongest since late July.
Markets had priced in the quarter-point increase itself and initially took it in stride. All three indexes were higher before the 2 p.m. decision. The selling started during the press conference.
Warsh was on a tightrope going in. The question was whether he'd frame the hike as a one-off adjustment—which risked the bond market reading it as too little to deter inflation—or as the start of a longer cycle. He did neither, and instead went in a more hawkish direction. "I would be hard pressed to describe broad financial conditions as restrictive," he said in his opening remarks. "This view was widely shared by the committee, so we removed a dose of accommodation."
That's a new way of describing a rate hike, and one investors aren't used to. Under his predecessor, Jerome Powell, the Fed called policy "modestly restrictive," meaning rates were already high enough to slow the economy. Warsh was saying that at 3.5%–3.75%, they weren't—and by implication, one quarter point may not have gotten them there either. Asked directly, he declined to say whether policy is restrictive now.
#hike #press
The S&P 500 dropped 1%, heading toward its lowest close since July. The Dow Jones Industrial Average fell 1.7%, or more than 700 points, with financial shares leading the decline. The Nasdaq Composite fell 0.8%. The 10-year Treasury yield held near 5% a day after touching its highest level since 2007, and the dollar index climbed 0.6% to its strongest since late July.
Markets had priced in the quarter-point increase itself and initially took it in stride. All three indexes were higher before the 2 p.m. decision. The selling started during the press conference.
Warsh was on a tightrope going in. The question was whether he'd frame the hike as a one-off adjustment—which risked the bond market reading it as too little to deter inflation—or as the start of a longer cycle. He did neither, and instead went in a more hawkish direction. "I would be hard pressed to describe broad financial conditions as restrictive," he said in his opening remarks. "This view was widely shared by the committee, so we removed a dose of accommodation."
That's a new way of describing a rate hike, and one investors aren't used to. Under his predecessor, Jerome Powell, the Fed called policy "modestly restrictive," meaning rates were already high enough to slow the economy. Warsh was saying that at 3.5%–3.75%, they weren't—and by implication, one quarter point may not have gotten them there either. Asked directly, he declined to say whether policy is restrictive now.
#hike #press
1 month ago
The Federal Reserve voted to raise interest rates by 25 basis points on Wednesday to a range of 3.75%-4% amid persistently high inflation. The decision was unanimous.
The median Fed official expects one more rate hike this year, according to the central bank's Summary of Economic Projections, also known as the dot plot.
The move was the Fed's first increase in the fed funds rate since 2023, when the Jerome Powell-led central bank concluded its post-pandemic hiking campaign. It was also largely priced in by the market, even as Federal Reserve Chairman Kevin Warsh has been adamant about not providing markets with forward guidance.
Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investments
Stocks were little changed when the decision was first announced but turned lower during Warsh's brief press conference.
#rate
The median Fed official expects one more rate hike this year, according to the central bank's Summary of Economic Projections, also known as the dot plot.
The move was the Fed's first increase in the fed funds rate since 2023, when the Jerome Powell-led central bank concluded its post-pandemic hiking campaign. It was also largely priced in by the market, even as Federal Reserve Chairman Kevin Warsh has been adamant about not providing markets with forward guidance.
Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investments
Stocks were little changed when the decision was first announced but turned lower during Warsh's brief press conference.
#rate
1 month ago
US stocks slipped after the Federal Reserve raised interest rates by 25 basis points to a target range of 3.75%-4% and hinted at another rate hike in 2026.
The Dow Jones Industrial Average (^DJI) fell 1.2%, while the S&P 500 (^GSPC) dropped 0.4%. The Nasdaq Composite (^IXIC) was little changed.
Long-dated bond yields rose, with the 10-year yield (^TNX) topping 5% once again.
The Fed's decision to hike interest rates for the first time in three years was a unanimous decision. The Fed's Summary of Economic Projections showed that officials see one more rate hike this year.
"Today's policy action will support a timelier return to the Committee's 2 percent goal," the FOMC policy statement said, which Warsh underscored in his press conference.
#interest #federal #reserve
The Dow Jones Industrial Average (^DJI) fell 1.2%, while the S&P 500 (^GSPC) dropped 0.4%. The Nasdaq Composite (^IXIC) was little changed.
Long-dated bond yields rose, with the 10-year yield (^TNX) topping 5% once again.
The Fed's decision to hike interest rates for the first time in three years was a unanimous decision. The Fed's Summary of Economic Projections showed that officials see one more rate hike this year.
"Today's policy action will support a timelier return to the Committee's 2 percent goal," the FOMC policy statement said, which Warsh underscored in his press conference.
#interest #federal #reserve
1 month ago
Last Updated: Sept. 16, 2026 at 5:47pm ET
9월. 16일 오후 3:16 New York 시간
By
Emily Russell
In today's SEP, committee members broadly projected that inflation wouldn't return to the Fed's 2% target until 2029. Warsh, however, has emphasized the need for a "timely return" to the inflation target.
#updated
9월. 16일 오후 3:16 New York 시간
By
Emily Russell
In today's SEP, committee members broadly projected that inflation wouldn't return to the Fed's 2% target until 2029. Warsh, however, has emphasized the need for a "timely return" to the inflation target.
#updated
1 month ago
NEW YORK, Sept 16 (Reuters) - The Federal Reserve raised interest rates on Wednesday and flagged further increases in borrowing costs in coming months, with new US central bank chief Kevin Warsh joining a unanimous decision that effectively acknowledges the Trump administration's inability so far to control inflation.
Speaking in Washington after the decision's release, Warsh echoed the official statement in promising the Fed's policy committee would "deliver price stability." Stocks and bonds sold off late Wednesday afternoon, reflecting expectations that rates may continue to rise for some time.
New policy projections showed 16 of 18 policymakers anticipate at least one more quarter-percentage-point hike by the end of this year, with only two of them seeing rates remaining stable from here. Warsh apparently again did not submit a rate projection.
It's the first policy shift under the new Fed chief, who took office in late May after being selected by Trump with an expectation that he would cut rates.
The Fed's new policy statement and economic projections, to the contrary, show a central bank opening the door on tighter monetary policy through next year, with the policy rate rising to the 4.00%-4.25% range by the end of this year and ending 2027 at the same level.
#rates #warsh #year #chief
Speaking in Washington after the decision's release, Warsh echoed the official statement in promising the Fed's policy committee would "deliver price stability." Stocks and bonds sold off late Wednesday afternoon, reflecting expectations that rates may continue to rise for some time.
New policy projections showed 16 of 18 policymakers anticipate at least one more quarter-percentage-point hike by the end of this year, with only two of them seeing rates remaining stable from here. Warsh apparently again did not submit a rate projection.
It's the first policy shift under the new Fed chief, who took office in late May after being selected by Trump with an expectation that he would cut rates.
The Fed's new policy statement and economic projections, to the contrary, show a central bank opening the door on tighter monetary policy through next year, with the policy rate rising to the 4.00%-4.25% range by the end of this year and ending 2027 at the same level.
#rates #warsh #year #chief
1 month ago
The Federal Reserve raised its benchmark interest rate by a quarter percentage point on Wednesday, the first increase since July 2023, with Fed Chair Kevin Warsh saying inflation has been "too high ... for too long."
The decision, reached by a unanimous 12-0 vote of the Federal Open Market Committee, brings the federal funds rate to a new target range of 3.75%–4%. The Fed's post-meeting statement pointed to persistent price pressures and a durable economy, declaring: "Inflation remains elevated. Today's policy action will support a timelier return to the Committee's 2 percent goal. The Committee will deliver price stability."
At a news conference following the decision, Warsh said the Fed needed to be confident "that underlying inflation is moving to our objective clearly and at sufficient speed," adding that the FOMC had determined "this standard has not been satisfied." He pointed to three converging factors — a robust labor market, inflation still running above target, and ongoing conflict in the Middle East — as driving the committee's unanimous vote.
The Dow Jones Industrial Average shed more than 400 points in afternoon trading following the Fed's move. The S&P 500 and the tech-heavy Nasdaq Composite also slumped.
Updated economic projections released Wednesday showed FOMC participants nudged their inflation forecasts higher. The median projection for headline PCE inflation this year rose to 3.7% and core PCE to 3.4%, each up 0.1 percentage point from the June forecast, the Fed said. Officials do not expect inflation to return to the 2% target until 2029. The median unemployment rate projection for 2026 fell to 4.1%, down from 4.3% in June, while the GDP growth outlook rose to 2.3% from 2.2%.
#federal #rate #committee
The decision, reached by a unanimous 12-0 vote of the Federal Open Market Committee, brings the federal funds rate to a new target range of 3.75%–4%. The Fed's post-meeting statement pointed to persistent price pressures and a durable economy, declaring: "Inflation remains elevated. Today's policy action will support a timelier return to the Committee's 2 percent goal. The Committee will deliver price stability."
At a news conference following the decision, Warsh said the Fed needed to be confident "that underlying inflation is moving to our objective clearly and at sufficient speed," adding that the FOMC had determined "this standard has not been satisfied." He pointed to three converging factors — a robust labor market, inflation still running above target, and ongoing conflict in the Middle East — as driving the committee's unanimous vote.
The Dow Jones Industrial Average shed more than 400 points in afternoon trading following the Fed's move. The S&P 500 and the tech-heavy Nasdaq Composite also slumped.
Updated economic projections released Wednesday showed FOMC participants nudged their inflation forecasts higher. The median projection for headline PCE inflation this year rose to 3.7% and core PCE to 3.4%, each up 0.1 percentage point from the June forecast, the Fed said. Officials do not expect inflation to return to the 2% target until 2029. The median unemployment rate projection for 2026 fell to 4.1%, down from 4.3% in June, while the GDP growth outlook rose to 2.3% from 2.2%.
#federal #rate #committee
1 month ago
The Federal Reserve voted unanimously to raise interest rates by a quarter percentage point and penciled in an additional hike later this year, steps aimed at containing inflation that will test Chairman Kevin Warsh's relationship with President Donald Trump. The benchmark federal funds rate is now in a range of 3.75% to 4%. Bloomberg's Michael McKee reports.
#kevin #voted
#kevin #voted
1 month ago
Brace for minor market tremors now that the Fed has hiked interest rates by 0.25%.
Although if history holds up, any losses could prove short-lived.
The S&P 500 (^GSPC) has declined by an average of 4.0% over the six weeks following the first Fed rate hike of a cycle across seven such episodes since 1988, per new ****** ysis from strategists at The Kobeissi Letter.
Stocks recovered all of those losses over the next five to six weeks on average.
In the six months following the first interest rate hike, the S&P 500 returned 4% on average. After 12 months, the S&P 500's average gain tallied 9%. Positive returns have occurred in every episode except 2022 over the 12 months.
"Fed rate hikes have historically been great buying opportunities," the strategists added.
Read more: Follow live coverage of the Fed meeting
The decision by the Fed to lift rates comes as sticky inflation readings — from the CPI to PPI — and rising energy costs force central bankers back into tightening mode. The rate hike marks the central bank's first interest rate increase since July 2023.
Investors are also focused on the updated economic projections and the Fed's "dot plot" to gauge future moves on rates — said dot plot didn't rule out one more hike this year. A hawkish dot plot as was received and follow up commentary from Fed Chairman Kevin Warsh could further elevate borrowing costs and pressure stocks initially around the world.
#rate #hike #first #plot
Although if history holds up, any losses could prove short-lived.
The S&P 500 (^GSPC) has declined by an average of 4.0% over the six weeks following the first Fed rate hike of a cycle across seven such episodes since 1988, per new ****** ysis from strategists at The Kobeissi Letter.
Stocks recovered all of those losses over the next five to six weeks on average.
In the six months following the first interest rate hike, the S&P 500 returned 4% on average. After 12 months, the S&P 500's average gain tallied 9%. Positive returns have occurred in every episode except 2022 over the 12 months.
"Fed rate hikes have historically been great buying opportunities," the strategists added.
Read more: Follow live coverage of the Fed meeting
The decision by the Fed to lift rates comes as sticky inflation readings — from the CPI to PPI — and rising energy costs force central bankers back into tightening mode. The rate hike marks the central bank's first interest rate increase since July 2023.
Investors are also focused on the updated economic projections and the Fed's "dot plot" to gauge future moves on rates — said dot plot didn't rule out one more hike this year. A hawkish dot plot as was received and follow up commentary from Fed Chairman Kevin Warsh could further elevate borrowing costs and pressure stocks initially around the world.
#rate #hike #first #plot
1 month ago
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The Federal Reserve raised interest rates on Wednesday, marking its first hike in more than three years, in a move that will likely make borrowing more expensive while giving savers a modest boost.
Fed Chairman Kevin Warsh and the Federal Open Market Committee announced a widely expected quarter-point rate increase and indicated another to come.
The stock market's reaction to the Fed's announcement is likely to draw the most headlines, and John Shugar, a partner at Goldman Sachs, leans toward an optimistic scenario.
"You basically have a market where all of the heavy lifting has actually been done on the earnings side," Shugar said in an ***** ysis. He points to "terrific opportunities" in various AI consumer sectors, though "over the next few weeks, we may have a lot more speed ***** ps."
#shugar #market #disclosure #chairman
The Federal Reserve raised interest rates on Wednesday, marking its first hike in more than three years, in a move that will likely make borrowing more expensive while giving savers a modest boost.
Fed Chairman Kevin Warsh and the Federal Open Market Committee announced a widely expected quarter-point rate increase and indicated another to come.
The stock market's reaction to the Fed's announcement is likely to draw the most headlines, and John Shugar, a partner at Goldman Sachs, leans toward an optimistic scenario.
"You basically have a market where all of the heavy lifting has actually been done on the earnings side," Shugar said in an ***** ysis. He points to "terrific opportunities" in various AI consumer sectors, though "over the next few weeks, we may have a lot more speed ***** ps."
#shugar #market #disclosure #chairman
1 month ago
Welcome to Investopedia's live blog of the September Federal Open Market Committee meeting. Here, we will bring you the latest news on the Fed's decision, explain what it means, and provide ******* ysis.
The FOMC hiked its influential interest rate at the close of today's meeting. Officials released a written statement explaining their decision at 2 p.m. Eastern Time, and Fed Chair Kevin Warsh hosted a press conference at 2:30 p.m.
Follow along with our live coverage of the Fed meeting below
SEPTEMBER 16, 2026 AT 06:56 PM GMT
High Inflation In August Didn't Necessarily Force Rate Hike, Warsh Says
#september #warsh #decision #welcome
The FOMC hiked its influential interest rate at the close of today's meeting. Officials released a written statement explaining their decision at 2 p.m. Eastern Time, and Fed Chair Kevin Warsh hosted a press conference at 2:30 p.m.
Follow along with our live coverage of the Fed meeting below
SEPTEMBER 16, 2026 AT 06:56 PM GMT
High Inflation In August Didn't Necessarily Force Rate Hike, Warsh Says
#september #warsh #decision #welcome
1 month ago
This story was originally published on Multifamily Dive. To receive daily news and insights, subscribe to our free daily Multifamily Dive newsletter.
For the first time in more than three years, the Federal Open Market Committee raised interest rates, following its two-day September meeting on Wednesday.
In a unanimous vote, the FOMC raised the target range for the federal funds rate by 25 basis points to 3.75% to 4%.
"This summer's inflation readings do not tell me that underlying trends have meaningfully improved," Kevin Warsh, chair of the Federal Reserve, said in a press conference following the announcement.
Despite persistent concern about inflation and the rate hike, multifamily executives thought the near-term impact on the market would be limited, as they kept their focus on Treasury rates.
#rate
For the first time in more than three years, the Federal Open Market Committee raised interest rates, following its two-day September meeting on Wednesday.
In a unanimous vote, the FOMC raised the target range for the federal funds rate by 25 basis points to 3.75% to 4%.
"This summer's inflation readings do not tell me that underlying trends have meaningfully improved," Kevin Warsh, chair of the Federal Reserve, said in a press conference following the announcement.
Despite persistent concern about inflation and the rate hike, multifamily executives thought the near-term impact on the market would be limited, as they kept their focus on Treasury rates.
#rate
1 month ago
"I am the house now," Treasury Secretary Scott Bessent told traders last week, as he defended the administration's increasingly interventionist approach to the bond market. He added that he had "asymmetric information" about what policymakers would do next and dared investors: "bet against me if you want."
On Wednesday, Federal Reserve chair Kevin Warsh might effectively take the other side of the bet.
It's been a hot American summer. Oil is hot, hovering around $110 a barrel. Bond yields are hot, too: the 10-year Treasury yield has pushed above 5%, around its highest level since 2007. Credit markets are running hot as well: U.S.-dollar debt issuance to finance AI and data-center development reached $308 billion through July. And all that borrowing is competing with U.S. national debt, which crossed $40 trillion less than a month ago. Stocks, despite a rough few days, are still up roughly 11% this year. Inflation, meanwhile, remains above 3%.
Put all that heat together, and the Federal Reserve is staring down a question it hasn't seriously confronted in three years: Is the U.S. economy actually overheating? Markets are betting the Fed thinks the answer is at least "maybe." Traders have priced a quarter-point hike Wednesday with near certainty.
But whether Wednesday amounts to a one-time course correction or the beginning of a new tightening cycle depends on what, exactly, is making the American economy hot. The last time the Fed began raising rates, in March 2022, Jerome Powell's Fed ultimately raised its benchmark rate by 525 basis points over 16 months.
Mohamed El-Erian, Wharton professor of practice and chief economic adviser at Allianz, parsed the current fervor and anxiety into four questions on X Tuesday: whether oil-supply disruptions persist, with China potentially acting as a "swing consumer"; whether Treasury Secretary Scott Bessent intervenes again to influence long-end yields; whether this week's hike proves "one and done" or the beginning of a cycle; and how markets balance AI's enormous promise against its enormous risks.
#secretary #federal #american
On Wednesday, Federal Reserve chair Kevin Warsh might effectively take the other side of the bet.
It's been a hot American summer. Oil is hot, hovering around $110 a barrel. Bond yields are hot, too: the 10-year Treasury yield has pushed above 5%, around its highest level since 2007. Credit markets are running hot as well: U.S.-dollar debt issuance to finance AI and data-center development reached $308 billion through July. And all that borrowing is competing with U.S. national debt, which crossed $40 trillion less than a month ago. Stocks, despite a rough few days, are still up roughly 11% this year. Inflation, meanwhile, remains above 3%.
Put all that heat together, and the Federal Reserve is staring down a question it hasn't seriously confronted in three years: Is the U.S. economy actually overheating? Markets are betting the Fed thinks the answer is at least "maybe." Traders have priced a quarter-point hike Wednesday with near certainty.
But whether Wednesday amounts to a one-time course correction or the beginning of a new tightening cycle depends on what, exactly, is making the American economy hot. The last time the Fed began raising rates, in March 2022, Jerome Powell's Fed ultimately raised its benchmark rate by 525 basis points over 16 months.
Mohamed El-Erian, Wharton professor of practice and chief economic adviser at Allianz, parsed the current fervor and anxiety into four questions on X Tuesday: whether oil-supply disruptions persist, with China potentially acting as a "swing consumer"; whether Treasury Secretary Scott Bessent intervenes again to influence long-end yields; whether this week's hike proves "one and done" or the beginning of a cycle; and how markets balance AI's enormous promise against its enormous risks.
#secretary #federal #american
1 month ago
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A Federal Reserve rate hike is largely priced in for Wednesday, but JPMorgan says the S&P 500 could still swing anywhere from 1% higher to 2% lower depending on how Chair Kevin Warsh frames the move.
A surprise decision to hold rates steady could prove painful. JPMorgan Chase & Co. (NYSE:JPM) estimates the index could fall 1.25% to 1.75% if the Fed leaves rates unchanged.
Polymarket traders put the chance of a 25-basis-point hike at 89% Wednesday morning, compared with 11% for no change, with roughly $193 million traded on the decision.
JPMorgan argues that an unexpected hold could raise doubts about the Fed's willingness to contain inflation, potentially pushing longer-term Treasury yields higher as investors demand more compensation for inflation risk.
#wednesday #hike #higher #finance
A Federal Reserve rate hike is largely priced in for Wednesday, but JPMorgan says the S&P 500 could still swing anywhere from 1% higher to 2% lower depending on how Chair Kevin Warsh frames the move.
A surprise decision to hold rates steady could prove painful. JPMorgan Chase & Co. (NYSE:JPM) estimates the index could fall 1.25% to 1.75% if the Fed leaves rates unchanged.
Polymarket traders put the chance of a 25-basis-point hike at 89% Wednesday morning, compared with 11% for no change, with roughly $193 million traded on the decision.
JPMorgan argues that an unexpected hold could raise doubts about the Fed's willingness to contain inflation, potentially pushing longer-term Treasury yields higher as investors demand more compensation for inflation risk.
#wednesday #hike #higher #finance
1 month ago
The Nasdaq 100 has rallied slightly to show signs of life as we head toward that crucial Federal Reserve interest rate decision later today. A hike of 25 basis points is expected. This is perhaps the market coming to terms with the new reality as we hold the consolidation.
The question will be whether or not Kevin Warsh sounds extraordinarily hawkish during this press conference, or if it is a situation where it is one and done. I think that probably comes into play here as well. Rates are backing off the 5% level in the 10-year at the moment, at least, but it is worth noting that the market has been extraordinarily resilient.
The Dow Jones 30 is rising a bit in the early part of the session as well. It is in the oversold part of the stochastic oscillator. It is kind of a messy look for the stochastic oscillator at the moment, but it is worth noting that the area right around 52,250 has been important and so far seems to be holding up. The 50-day EMA near the 52,700 level offers pretty significant resistance, so it could be worth watching.
The S&P 500 continues to hang around the 7,600 level. That is an area that had previously been significant resistance and now is offering a significant amount of support over the last 4 or 5 trading sessions. We also have the 50-day EMA there as well. So, a bounce from here and a recovery just means more consolidation.
It will be interesting to watch how this plays out during that press conference. It could be a volatile and ******* py session, but ultimately, the stock market has been rather resilient. The earnings calendar treated us fairly well, and the resiliency of the U.S. economy continues.
#significant #extraordinarily
The question will be whether or not Kevin Warsh sounds extraordinarily hawkish during this press conference, or if it is a situation where it is one and done. I think that probably comes into play here as well. Rates are backing off the 5% level in the 10-year at the moment, at least, but it is worth noting that the market has been extraordinarily resilient.
The Dow Jones 30 is rising a bit in the early part of the session as well. It is in the oversold part of the stochastic oscillator. It is kind of a messy look for the stochastic oscillator at the moment, but it is worth noting that the area right around 52,250 has been important and so far seems to be holding up. The 50-day EMA near the 52,700 level offers pretty significant resistance, so it could be worth watching.
The S&P 500 continues to hang around the 7,600 level. That is an area that had previously been significant resistance and now is offering a significant amount of support over the last 4 or 5 trading sessions. We also have the 50-day EMA there as well. So, a bounce from here and a recovery just means more consolidation.
It will be interesting to watch how this plays out during that press conference. It could be a volatile and ******* py session, but ultimately, the stock market has been rather resilient. The earnings calendar treated us fairly well, and the resiliency of the U.S. economy continues.
#significant #extraordinarily
1 month ago
Stock futures are higher after two days of losses for major indexes as traders await the Federal Reserve's decision on interest rates; the Fed is widely expected to raise its benchmark interest rate for the first time in three years to tame inflation; the European Union could add Canada as an "associate member" amid the country's growing trade war with the Trump administration; shares of SK Hynix and Intel are climbing following a report that the companies could partner to build chips in the U.S.; and retail sales data is due this morning. Here's what you need to know today.
Stock futures are rising this morning ahead of the highly anticipated Federal Reserve decision on interest rates. Dow Jones Industrial Average and S&P 500 futures were each up 0.3% in recent trading while futures tracking the tech-heavy Nasdaq added 0.6%. The major indexes fell Tuesday for the second straight session as oil prices and government bond yields rose. WTI crude oil futures were recently down more more than 2% at $103.50 per barrel after hitting a fresh four-month high yesterday. The yield on the 10-year Treasury note was at 4.97%, after jumping as high as 5.04% in yesterday's session, the highest point since the financial crisis of 2007. Bitcoin was holding steady at $76,100, after the cryptocurrency slumped yesterday as the Clarity Act failed to pass through a cloture vote in the Senate. Gold futures were up 1% to $4,390 an ounce.
The Federal Reserve's policy committee will wrap up its two-day meeting this afternoon amid expectations that the central bank will hike its benchmark rate for the first time in three years to address mounting inflationary pressure. The Federal Open Market Committee's decision is scheduled to be released at 2:00 p.m. ET, along with quarterly economic projections from FOMC members. Fed Chair Kevin Warsh, who took over the top position in May, has said repeatedly the Fed is squarely focussed on bringing inflation down to the Fed's target. Recent inflation data has confirmed that price pressures persist as oil prices rise owing to the Iran war. Investors will be looking for additional insights from Warsh, who is scheduled to speak at a press conference half an hour after the decision is announced. A rate hike is meant to raise borrowing costs, slowing economic activity such that inflation moderates. The challenge the Fed faces is that it can't address the underlying causes of the inflation, including the Iran war, tariffs and rampant corporate spending on AI.
#interest
Stock futures are rising this morning ahead of the highly anticipated Federal Reserve decision on interest rates. Dow Jones Industrial Average and S&P 500 futures were each up 0.3% in recent trading while futures tracking the tech-heavy Nasdaq added 0.6%. The major indexes fell Tuesday for the second straight session as oil prices and government bond yields rose. WTI crude oil futures were recently down more more than 2% at $103.50 per barrel after hitting a fresh four-month high yesterday. The yield on the 10-year Treasury note was at 4.97%, after jumping as high as 5.04% in yesterday's session, the highest point since the financial crisis of 2007. Bitcoin was holding steady at $76,100, after the cryptocurrency slumped yesterday as the Clarity Act failed to pass through a cloture vote in the Senate. Gold futures were up 1% to $4,390 an ounce.
The Federal Reserve's policy committee will wrap up its two-day meeting this afternoon amid expectations that the central bank will hike its benchmark rate for the first time in three years to address mounting inflationary pressure. The Federal Open Market Committee's decision is scheduled to be released at 2:00 p.m. ET, along with quarterly economic projections from FOMC members. Fed Chair Kevin Warsh, who took over the top position in May, has said repeatedly the Fed is squarely focussed on bringing inflation down to the Fed's target. Recent inflation data has confirmed that price pressures persist as oil prices rise owing to the Iran war. Investors will be looking for additional insights from Warsh, who is scheduled to speak at a press conference half an hour after the decision is announced. A rate hike is meant to raise borrowing costs, slowing economic activity such that inflation moderates. The challenge the Fed faces is that it can't address the underlying causes of the inflation, including the Iran war, tariffs and rampant corporate spending on AI.
#interest
1 month ago
By Anna Szymanski
Sept 16 (Reuters) - An unsettled few days set the scene for the week's main event: the Federal Reserve's policy decision. Markets overwhelmingly expect a quarter-point rate hike, the central bank's first since 2023, against the backdrop of resurgent oil prices and a 10-year Treasury yield that's recently breached the important 5% mark.
A rate increase could put Fed Chair Kevin Warsh on a collision course with the White House, given President Donald Trump's continued preference for easing policy. But given all the economic data supporting calls for a hike, Warsh risks losing credibility if the central bank stays on hold.
Today's decision - and the messaging surrounding it - will be a major test for Warsh. The Fed chair struck a hawkish tone at Jackson Hole last month and, with U.S. inflation still running above target and the unemployment rate still low, policymakers risk undermining their credibility if they don't follow through and lift the benchmark rate to the 3.75%-4.00% range.
That's as Donald Trump continues to push for the U.S. to have the lowest borrowing costs in the world. The U.S. president recently threatened to stop trading with some countries if the Fed does not cut rates, though markets have not taken that threat very seriously.
#rate #markets #president #decision
Sept 16 (Reuters) - An unsettled few days set the scene for the week's main event: the Federal Reserve's policy decision. Markets overwhelmingly expect a quarter-point rate hike, the central bank's first since 2023, against the backdrop of resurgent oil prices and a 10-year Treasury yield that's recently breached the important 5% mark.
A rate increase could put Fed Chair Kevin Warsh on a collision course with the White House, given President Donald Trump's continued preference for easing policy. But given all the economic data supporting calls for a hike, Warsh risks losing credibility if the central bank stays on hold.
Today's decision - and the messaging surrounding it - will be a major test for Warsh. The Fed chair struck a hawkish tone at Jackson Hole last month and, with U.S. inflation still running above target and the unemployment rate still low, policymakers risk undermining their credibility if they don't follow through and lift the benchmark rate to the 3.75%-4.00% range.
That's as Donald Trump continues to push for the U.S. to have the lowest borrowing costs in the world. The U.S. president recently threatened to stop trading with some countries if the Fed does not cut rates, though markets have not taken that threat very seriously.
#rate #markets #president #decision
