Fed meeting live updates: Anticipation builds with Fed expected to hike interest rates for first time in 3 years

Live updates

1. 33d ago

   Fed Raises Interest Rates by a Quarter Point

   The Federal Reserve increased its benchmark interest rate by a quarter percentage point, marking the first rate hike in three years. This action is the first under chair Kevin Warsh and occurs despite stubborn inflation. Traders had assigned a high probability to the Federal Open Market Committee voting for an increase in the overnight funds rate. The central bank and the Trump administration now sit on a collision course over monetary policy, as the administration had demanded lower borrowing costs.

   Why it matters

   The central bank pointed to elevated inflation as the primary reason for the decision, bringing an end to three years of steady rates. This action marks a distinct shift under the leadership of chair Kevin Warsh as he outlines his strategy for reshaping the central bank. The move directly defies political pressure from the administration for lower borrowing costs.

   What is confirmed

   • The Federal Reserve raised the interest rate by a quarter percentage point.
   • This is the first rate hike by the central bank in three years.
   • The central bank cited elevated inflation as the reason for the decision.

   Still unconfirmed

   • J.P. Morgan Global Research projects the Fed will hike rates again in December because the central bank has not yet outlined a roadmap for tackling inflation.
   • American Century reported that the Fed previously left rates unchanged and raised rate-hike prospects in June while Kevin Warsh outlined his strategy for reshaping the Fed.

   What to watch next

   • Watch for potential responses from the Trump administration regarding the collision course over monetary policy.
   • Monitor whether the Federal Reserve lays out a roadmap for tackling inflation leading into December.
   Sources used for this update (4)

   1. www.americancentury.com — Fed Stays Put Under Warsh Amid Elevated Inflation
   2. pro.thestreet.com — Pre-Market Stock Movers
   3. spectrumlocalnews.com — Federal Reserve raises interest rate a quarter percentage point, first hike in 3 years
   4. www.jpmorgan.com — What’s The Fed’s Next Move? | J.P. Morgan Global Research
   confidence 90%
2. 45d ago

   Fed Readies First Rate Hike in Three Years

   The Federal Reserve is expected to raise its benchmark interest rate, marking the first rate hike in three years and the first under chair Kevin Warsh. Stubborn inflation has set the stage for the Federal Reserve to act, defying demands from Trump for lower borrowing costs. Traders assigned a high probability to the Federal Open Market Committee voting to increase the overnight funds rate by a quarter point. The decision brings the central bank and the administration onto a collision course over monetary policy.

   Why it matters

   The expected rate increase breaks a prolonged pause in monetary tightening that has held since July 2023. The action places newly installed Fed leadership directly at odds with presidential economic demands. Observers note that raising borrowing costs aims to curb persistent price increases while testing the institutional independence of the central bank.

   What is confirmed

   • The Federal Reserve is expected to raise its benchmark rate for the first time in three years.
   • Traders assigned a better than 90 percent probability that the FOMC will vote to raise the overnight funds rate a quarter point.
   • The Federal Reserve raised interest rates at its September FOMC meeting, marking the first rate hike since July 2023 and the first under chair Kevin Warsh.

   Still unconfirmed

   • Trump and the Federal Reserve are on a collision course over interest rates as the administration demands lower rates while the central bank moves to raise them.

   What to watch next

   • The official announcement and vote tally from the FOMC meeting regarding the quarter-point rate hike.
   • Market reactions and subsequent economic data following the first rate increase since July 2023.
   Sources used for this update (14)

   1. AP News — Federal Reserve is expected to raise its benchmark rate, defying Trump’s demands
   2. The Washington Post — Opinion | Raising interest rates will curb inflation and maintain Fed credibility
   3. The New York Times — Warsh Set for Showdown With Trump as Fed Faces Pressure to Raise Rates
   4. Yahoo Finance — Fed meeting live updates: Anticipation builds with Fed expected to hike interest rates for first time in 3 years
   5. CBS News — Fed expected to hike interest rates for first time since 2023. See what it means for your money.
   6. Fox Business — Stubborn inflation sets stage for Federal Reserve to hike interest rates
   7. NBC News — Trump and the Federal Reserve are on a collision course over interest rates
   8. NPR — The Fed is expected to raise interest rates for the first time in 3 years
   9. The New York Times — Fed Readies for Momentous Rate Decision
   10. CNN — Trump wants lower rates. His new Fed chairman is poised to raise them
   11. www.cnbc.com — The Federal Reserve is expected to hike rates for the first time in three years: Live updates
   12. www.usatoday.com — Interest rate decision live: Fed expected to hike rates as prices rise
   confidence 95%