Fed meeting live updates: Rate hike expected for the first time in three years

Live updates

1. 59m ago

   Federal Reserve raises interest rates for first time since 2023

   The Federal Reserve increased its benchmark interest rate by 25 basis points on Wednesday, September 17, marking the first hike in three years. Fed Chair Kevin Warsh led the decision to combat stubbornly high inflation, signaling that one additional rate increase may occur before the end of the year. The move defied public demands from President Donald Trump for lower rates. Following the announcement and comments from Warsh, the Dow Jones Industrial Average fell between 631 and 700 points.

   Why it matters

   The decision reflects a tension between the central bank's inflation mandate and political pressure from the White House. Markets had previously assigned a better than 90% probability to a quarter-point increase. This shift ends a three-year period of steady or falling rates.

   What is confirmed

   • The Federal Reserve raised its benchmark interest rate by 25 basis points on September 17.
   • This is the first interest rate increase since 2023.
   • Fed Chair Kevin Warsh signaled one more rate hike may come this year.
   • The rate hike occurred despite demands from President Donald Trump for lower rates.

   Still unconfirmed

   • The Dow Jones Industrial Average fell 700 points after Kevin Warsh stated inflation remains too high.
   • The Dow Jones Industrial Average fell 631 points after the rate hike.
   • A top economist claims the Fed may be making a serious mistake as consumer pressure mounts.

   What to watch next

   • White House response to the rate hike
   • Official FOMC meeting minutes
   • Data on inflation trends affecting the second signaled hike
   Sources used for this update (17)

   1. Yahoo Finance — Fed meeting live updates: Anticipation builds with Fed expected to hike interest rates for first time in 3 years
   2. AP News — Warsh likely to side with financial markets over Trump as Fed rate hike expected
   3. The New York Times — Fed Readies for Momentous Rate Decision
   4. CNN — Trump wants lower rates. His new Fed chairman is poised to raise them
   5. www.cnbc.com — The Federal Reserve is expected to hike rates for the first time in three years: Live updates
   6. CNBC — Fed meeting live updates: Rate hike expected for the first time in three years
   7. nytimes.com — Live Updates: Warsh and Fed Officials Are Expected to Raise Interest Rates Despite Trump's Demands
   8. Reuters — Live: Fed rate hike expected as inflation worries push up bond yields
   9. Business Insider — A top economist says pressure is mounting for consumers, and the Fed may be about to make a 'serious' mistake
   10. Yahoo Finance — Wall Street bets on a rate hike, but the Fed decision could be a close call
   11. economictimes.indiatimes.com — FED Meeting Live | Dow Jones Futures | US Stock Market Live: US stocks trade higher ahead of much-anticipated Fed rate decision
   12. www.livemint.com — US Fed Meeting LIVE: Did Kevin Warsh defy Trump? US Fed hikes interest rates by 25 bps, signals one more hike this year
   confidence 95%