The Fed raised its policy rate 25 basis points to 3.75%-4.00%, its first hike since 2023, and Chair Kevin Warsh wouldn't call policy restrictive, even with builder sentiment at a one-year low and regional factory surveys weakening.
Fed Chair Kevin Warsh, after a unanimous 25bp hike, said summer inflation had not improved enough to keep policy on hold. Source
The Federal Reserve raised its target rate 25 basis points to 3.75%-4.00% on Wednesday, the first hike since July 2023 and the first time in over a decade the Committee has restarted tightening in the middle of an easing cycle. The vote was unanimous, 12-0. The hike itself wasn't news, markets had priced it in. What made the FOMC statement newsworthy was what came after: pressed on whether policy is now restrictive, Chair Kevin Warsh wouldn't say yes.
