Fed Chair Kevin Warsh Signals Hawkish Stance, Announces 25 bps Rate Hike

Federal Reserve Chair Kevin Warsh announced a 25 basis point interest rate hike, raising the federal funds rate to a range of 3.75%–4.00%, following a unanimous 12-0 vote by the FOMC. Warsh emphasized that inflation remains "too high" and defended the central bank's independence against political pressure to lower rates. The Fed's latest economic projections suggest at least one more rate hike may occur before the end of the year, as officials anticipate core PCE inflation to reach 3.4% in 2026.