The Federal Reserve raised its benchmark overnight rate by a quarter percentage point to a 3.75%\u20134.00% target range on Wednesday \u2014 the first hike since 2023 and the first policy shift under Chair Kevin Warsh \u2014 in a unanimous FOMC decision aimed at a \u201ctimelier\u201d return of inflation to 2%, Reuters reported.<\/p>\n
Updated projections showed 16 of 18 policymakers anticipating at least one more quarter-point increase by year-end, with the median path putting the policy rate in the 4.00%\u20134.25% range at the end of 2026 and holding there through 2027. Officials marked up PCE inflation to 3.7% for 2026 and do not project a return to the 2% target until 2029. Median real GDP was marked to 2.3% this year, with unemployment ending near 4.1%.<\/p>\n
Warsh told reporters inflation \u201cremains elevated\u201d and said he would be \u201chard-pressed to describe broad financial conditions as restrictive,\u201d framing the move as removing \u201ca dose of accommodation.\u201d President Trump repeated calls for rates near 1% on Truth Social after the decision; Warsh emphasized the committee\u2019s inflation mandate. CME FedWatch showed markets pricing a high probability of another hike before year-end, Reuters said.<\/p>\n
Sources:<\/strong> Reuters<\/a>; Federal Reserve (Warsh opening statement)<\/a>; Bloomberg<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Warsh joins a unanimous quarter-point move to 3.75%\u20134% and pencils in more tightening<\/p>\n","protected":false},"author":1,"featured_media":272,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-270","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/bugleblast.com\/wp-content\/uploads\/2026\/09\/bb-fed-hike-0919.jpg","_links":{"self":[{"href":"https:\/\/bugleblast.com\/index.php?rest_route=\/wp\/v2\/posts\/270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugleblast.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugleblast.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bugleblast.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bugleblast.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=270"}],"version-history":[{"count":1,"href":"https:\/\/bugleblast.com\/index.php?rest_route=\/wp\/v2\/posts\/270\/revisions"}],"predecessor-version":[{"id":271,"href":"https:\/\/bugleblast.com\/index.php?rest_route=\/wp\/v2\/posts\/270\/revisions\/271"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugleblast.com\/index.php?rest_route=\/wp\/v2\/media\/272"}],"wp:attachment":[{"href":"https:\/\/bugleblast.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugleblast.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugleblast.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}