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Fed & Monetary Policy

Warsh Fed signals higher for longer after September rate increase

The Federal Reserve raised rates this month and officials have since said another increase this year is a reasonable expectation.

Assembled by Claude from 13 sources at 12 outlets · Sunday, September 27, 2026, Evening edition, 5:21 PM EDT · no human byline

Disclosure. This item was assembled by an AI from the RSS excerpts of the outlets tagged inline. No human wrote or checked it before publication. Feed selection and categories are editorial choices by Teresa Lo. Nothing here is investment advice.

What happened

The Federal Reserve hiked interest rates on Sept. 16 theglobeandmail.com. The move followed a hawkish August speech by the new Fed chairman, Kevin Warsh, and at the September meeting Warsh addressed inflation directly finance.yahoo.com. He described the increase as removing “a dose of accommodation”, which suggests more hikes are on the cards nzherald.co.nz, and as essential to restoring the Fed's credibility washingtonexaminer.com.

New York Fed President John Williams has since said another rate hike this year is a “reasonable expectation” fool.com. Speaking in London, Williams indicated that tighter monetary policy could be required informistmedia.com and affirmed that “it is sensible to expect another rate increase” tmgm.com. Fed officials are signaling that the September hike may not be the last moneywise.com.

Why it matters to investors

A hiking cycle inverts the assumption behind positioning built for an easing path. The diagnosis officials are offering is not a simple supply shock. Chicago Fed President Austan Goolsbee has said strong demand, including AI investment, is now adding to inflation alongside supply shocks 247wallst.com.

Cleveland Fed President Beth Hammack said on Friday that the biggest risk with inflation is the formation of an inflationary mindset hfm.com, arguing that the public has faced above-target inflation long enough for expectations to shift vtmarkets.com. That framing matters because a demand-and-expectations story justifies tighter policy for longer than a supply story would, and it is consistent with a chair who has described the hike as credibility-restoring washingtonexaminer.com.

What to watch

Not everyone accepts the policy. Bill Ackman has called the rate hike a mistake that could make inflation worse moneywise.com, an argument that has carried into market coverage of the move finance.yahoo.com. The dissent has a mechanism behind it: higher rates raise financing costs for the very investment that is said to be driving demand.

Watch the speeches. Williams has now made the same case on both sides of the Atlantic informistmedia.comtmgm.com, and his “reasonable expectation” line is the closest thing markets have to guidance on a further move this year fool.com. Watch whether higher for longer is matched by a vote rather than by rhetoric, since the signal so far comes from a chair describing an accommodation removal nzherald.co.nz and from officials saying September may not be the last moneywise.com. And watch the hiking bets themselves, which have been firm enough to cap gains in spot gold informistmedia.com and to hold the euro near three-month lows tmgm.com.

Sources

  1. finance.yahoo.com: Bill Ackman says the Fed's rate hike could make inflation worse - Yahoo Finance (2026-09-27)
  2. fool.com: Why I'd Still Buy This 10%-Yielding Dividend Stock After the Fed's Latest Hike (2026-09-27)
  3. moneywise.com: Bill Ackman says Fed rate hike was a 'mistake' that could make inflation worse - Moneywise (2026-09-27)
  4. informistmedia.com: Spot gold up as dollar falls, rise in Fed rate hike bets caps gains - Informist (2026-09-26)
  5. tmgm.com: Euro consolidates near three-month lows amid high Oil prices, Fed hiking bets - TMGM (2026-09-25)
  6. 247wallst.com: 6 Words From Kevin Warsh Changed the Question From “Will the Fed Hike Rates?” to “How ... (2026-09-26)
  7. hfm.com: Fed's Hammack warns inflation mindset is the biggest risk - HFM | News & Analysis (2026-09-26)
  8. vtmarkets.com: Hammack warns of inflationary mindset as Fed signals higher-for-longer rates and dollar volatility (2026-09-26)
  9. finance.yahoo.com: Kevin Warsh Just Signaled Higher-for-Longer Rates. Here's What That Means for Big ... (2026-09-27)
  10. theglobeandmail.com: Kevin Warsh Just Signaled Higher-for-Longer Rates. Here's What That Means for Big ... (2026-09-27)
  11. msn.com: Fed chair Kevin Warsh has an inflation conundrum, and Trumpflation is only part of the problem (2026-09-26)
  12. nzherald.co.nz: Fed hiking cycle begins: What the latest rate rise means for markets - NZ Herald (2026-09-27)
  13. washingtonexaminer.com: Why the Fed's rate hike just came at the worst possible moment - Washington Examiner (2026-09-27)