Fed Under Warsh Raises Rates, Betting On 2% Inflation By 2029

The Federal Reserve, led by Chair Kevin Warsh, raised interest rates in its latest policy decision, according to MarketWatch and other wire reports. The move comes after what MarketWatch describes as more than five years of the Fed failing to bring inflation down to its 2% target; Fed leaders now believe they can get there by 2029 with only slightly higher rates. The decision matters because it reverses the market's assumption that the Fed's next move would be a cut. Commentary piece counted six previous rate-hiking cycles since 1990, each followed by fairly predictable stock market outcomes, and investors are already revisiting that playbook. One options-strategy note on the GPIX fund said it remains bullish specifically because the Fed has started hiking again. What isn't yet clear from Wednesday's coverage is the size of the increase or the committee's forward guidance on further hikes. Investors will be watching the post-meeting press conference and the next inflation prints for confirmation that Warsh's Fed is committed to a multi-year tightening path rather than a one-off move.