US Fed FOMC Meeting: Kevin Warsh Hikes Rates By 25 Bps For First Time In 3 Years, Hints At 1 More Hike In 2026

The FOMC members hiked inflation by 25 bps points to 3.75% to 4% with favour of 12-0 in votes. This is the first rate hike in 3 years. Fed has also signaled that one more rate hike could be on the table before 2026-end as they grapple with elevated inflation which has worsened by a recent surge in crude oil prices.

The Kevin Warsh-led FOMC has hiked Fed rates for the first time in 3 years. The reason is the inflation. Warsh said, "The plain fact is that inflation is too high and has been for too long." Warsh reiterated that FOMC's predominant focus is on the price stability side of their mandate. However, White House criticized the decision.

What do we know so far? August's jobs report came hotter than expected in Bloomberg's survey of economists, and headline inflation remained above the FOMC target at 3.4%, with core CPI rising 0.29% on a month-on-month basis.

Meanwhile, crude oil prices remain elevated, testing towards the $110 per barrel mark, and the US 10-year treasury yields have crossed 5%, which is its highest level since 2007. Also, the geopolitical crisis in West Asia remains a drawback, putting further pressure on the Fed.

The Federal Reserve is expected to raise the target range for the federal funds rate by 25bps to 3.75%-4.00% in September 2026, marking the first rate hike since 2023, as inflation remains well above target and the energy shock stemming from the war with Iran continues to weigh on the outlook. US headline inflation held at 3.4% year-on-year in August, while core inflation was at 2.4%. Meanwhile, diesel prices have risen to $6 a gallon, adding further pressure to the inflation outlook as an end to the conflict appears increasingly distant. In his Jackson Hole speech last month, Chair Warsh said that if the Fed was not confident that underlying inflation was declining, it would have "work to do". Policymakers will also release updated economic projections. In June, the so-called dot plot showed that nine officials expected at least one rate hike this year, while six anticipated at least two. Chair Warsh did not submit a forecast at the time, as per Trading Economics.

Ahead of the Fed policy, the Dow Jones, Nasdaq, and S&P 500 futures are trading higher despite Wall Street ending in red yesterday.

On Tuesday, the Dow Jones Industrial Average index plunged by 328.09 points, or 0.63% to close at 52,093.11. Also, the Nasdaq Composite index dropped by 204.84 points or 0.78% to close at 25,981.57. Lastly, the S&P 500 slipped by 34.25 points or 0.45% to end at 7,585.73.

If Fed hikes its federal fund rates, then it will be first hike in 3 years.

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Sep 17, 2026, 5:51 am IST

Live Fed FOMC Meeting: US Stock Market Crashes On Fed Rate Hike

In regular trading on Wednesday, the Dow dropped 1.21%, weighed down by losses among financial services stocks. The S&P 500 and Nasdaq Composite also fell 0.45% and 0.01%, respectively, giving up gains made earlier in the session. As widely expected, the Fed raised its benchmark interest rate by 25 basis points to 3.75%-4% while signaling another rate increase later this year. The central bank is seeking to curb inflationary pressures as oil prices climbed above $100 per barrel. In corporate news, Generac jumped 33% in extended trading after Amazon received warrants to purchase up to $340 million worth of its shares under an agreement for Generac to supply backup power generators to Amazon’s data centers, as per Trading Economics.

Sep 17, 2026, 5:50 am IST

Live Fed FOMC Meeting Policy: White House Criticizes

In an interview with Fox News, White House spokesman Kush Desai said, "Today’s rather unfortunate decision by the Federal Reserve to hike interest rates was not, from the administration’s point of view, backed by a particularly compelling economic case." He added, "To the extent that we still do have inflation, as the president and others have noted, it’s entirely driven by an energy supply shock, by what’s going on with oil prices in the Middle East."

Sep 17, 2026, 5:50 am IST

Live Fed FOMC Meeting Policy: Why Kevin Warsh Hikes Fed Rates?

The Kevin Warsh-led FOMC has hiked Fed rates for the first time in 3 years. The reason is the inflation. Warsh said, "The plain fact is that inflation is too high and has been for too long.” Warsh reiterated that FOMC's predominant focus is on the price stability side of their mandate. However, White House criticized the decision.

Sep 17, 2026, 5:49 am IST

Live Fed FOMC Meeting: More Rate Hike Ahead

Fed has also signaled that one more rate hike could be on the table before 2026-end as they grapple with elevated inflation which has worsened by a recent surge in crude oil prices.

Sep 17, 2026, 5:49 am IST

Live Fed FOMC Meeting: Fed Hikes Rates For First Time By 25 Bps In 3 Years

The FOMC members hiked inflation by 25 bps points to 3.75% to 4% with favour of 12-0 in votes. This is the first rate hike in 3 years.

Sep 17, 2026, 5:48 am IST

Live Fed FOMC Meeting: Inflation Remain Elevated

FOMC: Inflation remains elevated. Today's policy action will support a timelier return to the Committee's 2 percent goal. The Committee will deliver price stability.

Sep 17, 2026, 5:48 am IST

Live Fed FOMC Meeting: Geopolitical Risks Uncertain

FOMC said, Economic activity is expanding at a solid pace. While uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient. Productivity growth is strong, and capital investment is robust. Job gains have kept pace with the workforce, and the unemployment rate has changed little.

Sep 17, 2026, 5:48 am IST

Live Fed FOMC Meeting: 25 Bps Hike In Fed Rates

The FOMC decided to raise the target range for the federal funds rate by 1/4 percentage point to 3-3/4 to 4 percent, in support of the Federal Reserve's dual mandate. The Committee is continuing its policy of maintaining ample reserves in the banking system.

Sep 16, 2026, 7:20 pm IST

US Stock Market Today Live: Wall Street Trades Cautiously

The Wall Street traded in the early hours of Wednesday with a slight selling bias. The Dow Jones plunged 58.88 points to trade at 52,034.23. On the contrary, the S&P 500 index traded higher by 22 points to 7,607.72. On the other hand, Nasdaq Composite outperformed with 158 points surge to trade at 26,139.17.

Sep 16, 2026, 5:33 pm IST

US Fed FOMC Meeting Live: ING Predicts Fed To Hike Rates By 25 Bps

We changed our view to a 25bp Federal Reserve rate hike in September in the wake of Chair Kevin Warsh’s address at the Jackson Hole symposium. The data since then has justified that decision. Our projections for jobs and inflation suggest no need for a series of hikes. Since the Federal Reserve's last forecast update, we saw a weaker than expected 2Q GDP report, a softer trend in job creation, notwithstanding the August surprise, while inflation has shown some encouraging signs of decelerating, even if the year-on-year rate remains above 2%. We continue to argue that weak wage growth, tariff refunds and a stagnant housing market, which will slow shelter inflation, will all contribute towards a convergence on the 2% inflation target next year. The risk is energy prices.

Sep 16, 2026, 5:09 pm IST

LIVE Fed FOMC Meeting Today: Latest Fed Rates Here

At present, the Fed rates are 3.5% to 3.75%. If Fed hikes rate, it will be the first hike since 2023.

Sep 16, 2026, 5:08 pm IST

US Stock Market Live Today: S&P 500 Futures Gain Too

The S&P 500 futures also followed the uptrend in Nasdaq and Dow Jones futures. Currently, S&P 500 futures rose by 26 points to trade above 7,609.

Sep 16, 2026, 5:08 pm IST

US Stock Market Today Live: Nasdaq Futures Outperform

Nasdaq futures outperformed its counterparts on Wednesday as market predicts rate hike from Fed. The Nasdaq 100 futures soared by 126 points to trade around 29,081.

Sep 16, 2026, 5:07 pm IST

US Stock Market Live Today: Dow Jones Futures Gain 120 Pts

As the Wall Street prepares to open on Wednesday, the Dow Jones futures gained momentum. Dow Jones futures is currently up by 120 points to trade around 52,235.

Sep 16, 2026, 5:01 pm IST

Live Fed FOMC Meeting Today: What Time Fed Policy Will Be Announced?

The two-day US Fed meeting wraps up today, September 16, 2026. The 12-member committee is set to announce its interest rate decision at 11:30 PM IST, followed immediately by US Fed Chair Kevin Warsh's address.