Fed's table is set for a rate hike, a first under Warsh
The Federal Reserve is expected to raise interest rates this Wednesday. This would mark the first rate increase under new Fed Chair Kevin Warsh. Market indicators show the 2-year bond yield is +4.65%, which sits 90 bps above the current high end of interest rates. While a hike appears likely, investors are focusing on signals regarding future policy moves and their potential impact on bonds and mortgages. Warsh faces a difficult internal vote as the central bank prepares for the decision.
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- ✓ The Federal Reserve is expected to raise interest rates this Wednesday.
- ✓ Kevin Warsh is the new chair of the Federal Reserve.
What changed
The Fed is now positioned for a specific rate hike decision scheduled for Wednesday.
Live updates
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Federal Reserve prepares for first rate hike under Chair Kevin Warsh
The Federal Reserve is expected to raise interest rates this Wednesday. This would mark the first rate increase under new Fed Chair Kevin Warsh. Market indicators show the 2-year bond yield is +4.65%, which sits 90 bps above the current high end of interest rates. While a hike appears likely, investors are focusing on signals regarding future policy moves and their potential impact on bonds and mortgages. Warsh faces a difficult internal vote as the central bank prepares for the decision.
Why it matters
Kevin Warsh assumed leadership of the Federal Reserve during a period of inflation pressure. He previously dealt with a communications failure in July. The current decision serves as a test of his approach to monetary policy.
What is confirmed
- The Federal Reserve is expected to raise interest rates this Wednesday.
- Kevin Warsh is the new chair of the Federal Reserve.
Still unconfirmed
- The 2-year bond yield is +4.65%, 90 bps above the current high end of interest rates.
- Warsh faces a tough battle regarding the vote for the interest rate hike.
- Warsh experienced a communications mess in July.
What to watch next
- The Federal Reserve's official interest rate announcement on Wednesday
- Guidance from Kevin Warsh regarding future rate hikes
confidence 80%Sources used for this update (7)
- The Economist — Kevin Warsh should raise interest rates
- Reuters — Fed's table is set for a rate hike, a first under Warsh
- CNBC — Counting the votes: Warsh faces a tough battle as the Fed girds for expected interest rate hike
- axios.com — How Warsh can avoid a repeat of July's communications mess
- The Boston Globe — On inflation, it’s put up or shut up time for new Federal Reserve chair Kevin Warsh
- finance.yahoo.com — Gaming the Fed Odds for a Rate Hike Wednesday
- finance.yahoo.com — Fed Rate Hike Looks Likely—What Comes Next Matters More
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