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Fed Chair Kevin Warsh leads unanimous 25bp hike, calls decision 'sober'

financeSep 16, 2026457,649

The US Federal Reserve voted unanimously 12-0 to raise its benchmark interest rate by 25 basis points to a new range of 3.75 percent to 4 percent, the first Fed rate increase since 2023 and the first policy move under chair Kevin Warsh. Warsh, who took office in May after being nominated by Donald Trump, called the decision "a sober decision, serious decision, responsible decision" and said "the plain fact is that inflation is too high and has been for too long." Warsh declined to name the US-Israel war against Iran while acknowledging shifting geopolitics and offered no signal on whether this quarter-point hike will be the first of a series. Warsh also defended Fed independence, saying "We stay in our lane," and declined to comment on Trump’s public demands for rate cuts. The move could put Warsh on a collision course with Trump, who expected rate reductions from his nominee, and over time the higher rate may translate into increased borrowing costs for mortgages, auto loans, and credit cards.

Hoodlum 🇺🇸
@nothoodlum.bsky.social

I’ll bet Senile Satan has been spending his entire day trying to come up with an insulting name for Fed Chair Kevin Warsh. “How about Kevin Worst, Natalie?” “That’s another great one, Mr. President.”

305123d ago
Steve Benen
@stevebenen.com

Trump effectively hatched an extortion scheme, telling his handpicked Fed chair that the White House would cut off trade to much of the world in response to a rate hike. Kevin Warsh did it anyway. Was Trump bluffing? (I have a hunch we know the answer to that.) www.ms.now/rachel-maddo...

51823d ago
Aaron Rupar
@atrupar.com

TRUMP: Kevin Warsh doesn't have the votes. He's got a hostile board. REPORTER: He says raising rates was the right decision and responsible decision TRUMP: Well, I don't know what he's referring to, but I will tell you interest rates are too high. We have the greatest economy in history

48023d ago
The Bulwark
@thebulwark.com

Fed Chair Warsh on raising rates: “The decision we made today was a sober decision, serious decision, responsible decision, one that we have been preparing for and thinking about in my 110 or 120 days here…I committed to a discipline, a set of principles.”

14923d ago
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