Warsh's Fed Enters Hiking Cycle with Rate Hike

Kevin Warsh's Federal Reserve has taken its first step into a hiking cycle by raising interest rates on Wednesday. The move was widely anticipated, but some were unconvinced that a hike was necessary, and expected Warsh to signal that this would be a one-time event.

New Chair Kevin Warsh's speech at Jackson Hole last month seemed to leave him little choice but to raise rates. His comments hinted at a hawkish stance, which some interpreted as a sign of a longer-term hiking cycle.

However, many were still unconvinced that a hike was necessary, and expected Warsh to draw the sting by hinting this would be 'one and done', not the start of a hiking cycle.