Warsh Reiterates Higher-For-Longer Stance After Fed Rate Hike

Fed Chair Kevin Warsh held a press conference on September 16, 2026, after the Federal Reserve's first rate hike since July 2023. The Committee had lifted the federal funds target range by 25 basis points to 3.75%-4.00% in a unanimous vote.

Warsh emphasized that even with recent economic strengthening, inflation remains the problem and prices have been stable for over five and a half years. He noted that financial conditions did not look 'restrictive' enough, justifying further policy tightening if needed.

The Fed's actions support a more timely return to the 2% inflation goal, and Warsh stressed that trends matter more than any one data release. The Summary of Economic Projections indicates a large majority of officials anticipate at least one more quarter-point hike by year-end, with the policy rate seen in the 4.00%-4.25% range by end-2026.