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Federal Reserve delivers first rate hike since 2023

FOMC expects policy to remain around 4.1% for 2026-27 and inflation to reach 2% by 2029

Kevin Warsh

The Federal Open Market Committee (FOMC) voted unanimously to increase the target federal funds rate by 25 basis points to 3.75-4.00%.

Federal Reserve chairman Kevin Warsh unveiled the decision in Washington, DC on September 16. The FOMC’s statement read largely identical to July’s, except for including that the hike would “support a timelier return to the committee’s 2% goal”.

“We removed a dose of accommodation. Consider the geopolitical landscape of shocks and uncertainty, and you begin to

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